Question

Raju, Rinku and Munni were partners sharing Profits & Losses in the ratio 3 : 1 : 1. They admitted Chunni into partnership for `1/5` share. It was decided that Munni will have `1/4` share in future profits. Goodwill of the firm was valued at ₹ 3,20,000 and Chunni was unable to bring anything. Calculate New Ratio, Sacrificing Ratio and journalise for goodwill at the time of admission of Chunni.

Answer 1

Let total share be 1

Chunni share = `1/5`

Remaining share = `4/5`

Munni share = `1/4`

Remaining share = `4/5 - 1/4 = 11/20`

Raju share = `11/20 xx 3/4 = 33/80`

Rinku share = `11/20 xx 1/4 = 11/80`

New Ratio = `33/80 : 11/80 : 1/4 : 1/5`

= 33 : 11 : 20 : 16

Sacrificing Ratio = 3 : 1 (Raju and Rinku) Gain to Munni = `1/2`

Journal Entry
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(i)	Chunni’s Current A/c     ...Dr.		64,000	-
	Munni’s Capital A/c     ...Dr.		16,000	-
	To Raju’s Capital A/c		-	60,000
	To Rinku’s Capital A/c		-	20,000
	(Being adjustment entry passed for goodwill)