Question

A and B are partners sharing profits in the ratio of 7 : 5. C is admitted into the partnership for `1/6`th share, which he acquires `1/24`th from A and `1/8`th from B. C does not pay anything for his share of goodwill. On C’s admission, the firm’s goodwill was valued at ₹ 1,80,000. Credit will be given to ______.

पर्याय

• A ₹ 22,500; B ₹ 7,500

• A ₹ 7,500; B ₹ 22,500

• A ₹ 45,000; B ₹ l,35,000

• A ₹ 1,35,000; B ₹ 45,000

Answer 1

A and B are partners sharing profits in the ratio of 7 : 5. C is admitted into the partnership for `1/6`th share, which he acquires `1/24`th from A and `1/8`th from B. C does not pay anything for his share of goodwill. On C’s admission, the firm’s goodwill was valued at ₹ 1,80,000. Credit will be given to A ₹ 7,500; B ₹ 22,500.

Explanation:

A’s sacrifice = `1/24`

B’s sacrifice = `1/8`

To simplify, use a common denominator of 24:

A’s sacrifice = `1/24`

B’s sacrifice = `1/8`

= `(1 xx 3)/(8 xx 3)`

= `3/24`

Sacrificing Ratio of A and B = `1/24 : 3/24` or 1 : 3

The total goodwill of the firm is valued at ₹ 1,80,000. C's share in the profits is `1/6`.

C’s Goodwill = `1,80,000 xx 1/6`

= 30,000

The ₹ 30,000 (which C will adjust through his Capital/Current account) is distributed to A and B in their sacrificing ratio of 1:3.

Amount credited to A = `30,000 xx 1/4`

= 7,500

Amount credited to B = `30,000 xx 3/4`

= 22,500