50 Views

Question :  P and S are partners sharing profits in the ratio of 3 : 2. R is admitted with 1/5th share and he brings in Rs.42,000 as his share of goodwill which is Credited to the Capital Accounts of P and S respectively with Rs.31,500 and Rs.10,500. New profit sharing ratio will be -

Option 1: 3 : 2 : 5

Option 2: 9 : 7 : 4

Option 3: 7 : 9 : 4

Option 4: 3 : 1 : 5


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 26th Jan, 2024

Correct Answer: 9 : 7 : 4


Solution : As here P and S has 3:2 as ratio before , they admit a new partner R for a share of 1/5 and he brings ₹42,000 as his share of goodwill which is credited to capital accounts of P and S with Rs.31,500 and Rs.10,500, the goodwill is divided between P and S in the ratio :-

= 31,500 : 10,500

= 3 : 1 (in the ratio of goodwill ), we will calculate the sacrifice made by P and S in the favor of new partner R's share of 1/5 =

sacrifice made by P = 1/5 * 3/4

                                 = 3/20

sacrifice made by S = 1/5 * 1/4

                                 = 1/20

now from this sacrifice we will calculate, the new profit sharing ratio of P and S :-

P's new ratio = old ratio - sacrifice made by P

                                    = 3/5 - 3/2

                                   = 9/20

S's new ratio = old ratio - sacrifice made by S

                                     = 2/5 - 1/20

                                      = 7/20

R's ratio = 1/5 0r 4/20 [ 9/20 : 7/20 : 1/5 = (9 + 7 + 4) / 20 ]

so, the new profit sharing ratio between P and S and R will be :-

= 9/20 : 7/20 : 4/20

= 9 : 7 : 4                                    

Hence the correct answer is option 2.

Related Questions

Amity University | M.Tech Adm...
Apply
Ranked amongst top 3% universities globally (QS Rankings).
Amity University Noida MBA Ad...
Apply
Amongst top 3% universities globally (QS Rankings)
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
UPES MBA Admissions 2025
Apply
Ranked #41 amongst institutions in Management by NIRF | 100% Placement | Last Date to Apply: 15th July
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books