# Atul and Neera Were Partners in a Firm Sharing Profits in the Ratio of 3: 2. They Admitted Mitali as a New Partner. - Accountancy

Sum

Atul and Neera were partners in firm sharing profits in the ratio of 3: 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ₹ 2,00,000. Mitali brings her share of a goodwill premium of ₹ 20,000 in cash, which is entirely credited to Atul's Capital Account. Calculate the new profit sharing ratio.

#### Solution

Revalued Goodwill of the firm on Mitali’s admission = ₹ 2,00,000
Premium for Goodwill brought in cash by Mitali = ₹ 20,000

So, Mitali’s share in future profit of the firm = (20,000)/(2,00,000) = (1)/(10)

Atul’s Account has only been credited by the premium brought in by Mitali

So, Atul’s Sacrificing Share = Profit Share of Mitali  = (1)/(10)

New Profit Share of Atul = Old Profit Share – Sacrificing Share

New Profit Share of Atul = (3)/(5) - (1)/(10) = (5)/(10)

Hence,

 Atul Neera Mitali New Profit Sharing Ratio (5)/(10) (2)/(5) (1)/(10) OR (5)/(10) (4)/(10) (1)/(10) OR 5 : 4 : 1
Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio
Is there an error in this question or solution?