Question

X and Y are partners sharing profits in the ratio of 4:3. Z is admitted for 1/5th share and he brings in ₹1,40,000 as his share of goodwill in cash of which ₹1,20,000 is credited to X remaining amount to Y. New profit sharing ratio will be
​

Answer 1

Answer:

New Profit sharing ratio = 1 - 1/5 = 4/5

A= 5/8 * 4/5 = 20/40 ; B= 3/8 * 4/5 = 12/40 ; C= 1/5 * 8/8 = 8/40

i.e. 5 ; 3; 2.

Capitals = 120000 * 5 = 600000

A - 600000 * 5/10 = 300000

B - 600000 * 3/10 = 180000

hope this helps...