Question

A and B were partners with capitals of ₹ 6,00,000 and ₹ 4,00,000, respectively. C was admitted for a `1/5`th share in profits. The journal entry recorded for the premium for goodwill brought in by C is given below:

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Premium for Goodwill A/c   ...Dr.		2,00,000
	To A’s Capital A/c			1,20,000
	To B’s Capital A/c			80,000
	(Adjustment for premium for goodwill brought in by C)

The new profit-sharing ratio will be:

विकल्प

• 21 : 19 : 10

• 19 : 21 : 10

• 12 : 8 : 5

• 13 : 7 : 5

Answer 1

12 : 8 : 5

Explanation:

Calculate the Remaining Share of Profit:

Remaining Share = `1 - 1/5`

= `4/5`

Calculate the New Shares of A, B, and C:

A’s New Share = `4/5 xx 3/5`

= `12/25`

B’s New Share = `4/5 xx 2/5`

= `8/25`

C’s New Share = `1/5`

`(1 xx 5)/(5 xx 5)`

= `5/25`

The new profit sharing ratio is 12 : 8 : 5.