Question

A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the partnership with a `1/4`th share in future profits. The new profit-sharing ratio is 5 : 4 : 3. The firm’s goodwill on C’s admission was valued at ₹ 1,44,000. But C could not bring any amount for goodwill in Cash. Credit will be given to ______.

विकल्प

• A ₹ 80,000; B ₹ 64,000

• A ₹ 20,000; B ₹ 16,000

• A ₹ 1,05,600; B ₹ 38,400

• A ₹ 26,400; B ₹ 9,600

Answer 1

A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the partnership with a `1/4`th share in future profits. The new profit-sharing ratio is 5 : 4 : 3. The firm’s goodwill on C’s admission was valued at ₹ 1,44,000. But C could not bring any amount for goodwill in Cash. Credit will be given to A ₹ 26,400; B ₹ 9,600.

Explanation:

Calculate the sacrifice Ratio:

A’s Sacrifice = `3/5 - 5/12`

= `(3 xx 12)/(5 xx 12) - (5 xx 5)/(12 xx 5)`

= `36/60 - 25/60`

= `11/60`

B’s Sacrifice = `2/5 - 4/12`

= `(2 xx 12)/(5 xx 12) - (4 xx 5)/(12 xx 5)`

= `24/60 - 20/60`

= `4/60`

The sacrificing shares of A and B = `11/60 : 4/60` or 11 : 4.

The total goodwill of the firm is ₹ 1,44,000. C’s share of profits is `3/12 "or" 1/4`.

C’s Goodwill = `1,44,000 xx 1/4`

= 36,000

The ₹ 36,000 (adjusted via C’s capital/current account as cash was not brought in) is distributed to A and B in their sacrificing ratio of 11 : 4.

Amount credited to A = `36,000 xx 11/15`

= 26,400

Amount credited to B = `36,000 xx 4/15`

= 9,600