Advertisements
Advertisements
Question
Ganga and Triveni were partners with capitals of ₹ 2,00,000 and ₹ 4,00,000, respectively. Saraswati was admitted for a `1/4`th share in the profits. Saraswati was unable to bring her share of the goodwill premium in cash. The journal entry recorded for goodwill premium is given below:
| Date | Particulars | L.F. | Amount (₹) | Amount (₹) |
| Saraswati’s Current A/c ...Dr. | 50,000 | − | ||
| To Ganga’s Capital A/c | − | 10,000 | ||
| To Triveni’s Capital A/c | − | 40,000 | ||
| (Adjustment of goodwill premium on Triveni’s Admission) |
The new profit-sharing ratio will be:
Options
17 : 28 : 15
8 : 37 : 15
9 : 6 : 5
6 : 9 : 5
Advertisements
Solution
9 : 6 : 5
Explanation:
Capital Accounts of Ganga and Triveni have been credited by ₹ 10,000 and ₹ 40,000.
Hence, the sacrificing ratio is 1 : 4.
Saraswati’s Share is `1/4`.
Sacrifice by Ganga = `1/4 xx 1/5`
= `1/20`
Sacrifice by Triveni = `1/4 xx 4/5`
= `4/20`
Ganga’s New Share = `1/2 - 1/20`
= `9/20`
Triveni’s New Share = `1/4 - 4/20`
= `6/20`
Saraswati’s Share = `1/4` or `5/20`
Hence, New Share = `9/20 : 6/20 : 5/20` or 9 : 6 : 5
