Question

A, B and C are partners sharing profits in 2 : 2 : 1. D was admitted with `1/5` th share of profits, and it was agreed that A would retain his original share. D brings his share of goodwill, ₹ 1,20,000 in Cash. The following balances appeared in their books at this date: Particulars Amount (₹) Amount (₹) Plant   3,00,000 Investments   2,00,000 Investment Fluctuation Reserve   20,000 Advertisement Suspense Account   60,000 Contingency Reserve   90,000 Capitals:     A   4,00,000 B   3,00,000 C   2,00,000 Sundry Debtors 1,26,000 1,18,000 Less: Provision for Doubtful Debts 8,000 It was agreed that: The plant is overvalued by 25%. The market value of Investments is ₹ 1,50,000. Bad-debts ₹ 6,000 be written off, and a provision for doubtful debts be maintained @ 10% on debtors. You are required to choose the correct option:

New Profit Sharing Ratio will be:

पर्याय

• 2 : 2 : 1 : 1

• 2 : 4 : 2 : 1

• 6 : 4 : 2 : 3

• 6 : 4 : 2 : 1

Answer 1

6 : 4 : 2 : 3

Explanation:

A’s Share = `2/3` : D’s Share = `1/5` : Remaining Share = `1 - 2/3 - 1/5 = 2/5`

This will be divided between B and C in their existing ratio 2 : 1.

B’s new share = `2/5 xx 2/3`

= `4/15`

C’s new share = `2/5 xx 1/3`

= `2/15`

A’s new share = `2/5 xx 3/3`

= `6/15`

D’s new share = `1/5 xx 3/3`

= `3/15`

New Share of A, B, C and D = `6/15 : 4/15 : 2/15 : 3/15`

= 6 : 4 : 2 : 3