Partnership

Admission

Medium

R and S are partners in a firm sharing profits in the ratio of 5:3. They admitted B as a new partner for 1/7th share in the profit. The new profit sharing ratio will be 4:2:1. The sacrificing ratio of R and S is:

3:4

1:1

3:5

4:5

✅ Correct Option: 3

Solution

Understanding Sacrificing Ratio:

Sacrificing Ratio = Old Share - New Share

This represents how much each existing partner gives up for the new partner.

Step 1: Calculate Old Shares

Old ratio of R and S = 5:3

R's old share = $\frac{5}{8}$
S's old share = $\frac{3}{8}$

Step 2: Calculate New Shares

New ratio of R:S:B = 4:2:1

Total parts = 4 + 2 + 1 = 7

R's new share = $\frac{4}{7}$
S's new share = $\frac{2}{7}$

Step 3: Calculate Individual Sacrifices

R's Sacrifice:

= Old share - New share

= $\frac{5}{8} - \frac{4}{7}$

= $\frac{35}{56} - \frac{32}{56}$ = $\frac{3}{56}$

S's Sacrifice:

= Old share - New share

= $\frac{3}{8} - \frac{2}{7}$

= $\frac{21}{56} - \frac{16}{56}$ = $\frac{5}{56}$

Step 4: Find Sacrificing Ratio

Sacrificing Ratio = R's sacrifice : S's sacrifice

= $\frac{3}{56} : \frac{5}{56}$

= 3 : 5

Answer: Option 3 (3:5)

2025: 14 May Shift 1

The New Profit Sharing Ratio in this case is:

2026: 13 May Shift 2

Kishor and Kunal were partners sharing profits and losses in the ratio of 5:3. On 1st April, 2026 they admitted Kushagra as a new partner and new ratio was decided as 3:2:1. Goodwill of the firm was valued as ₹ 18,00,000. Kushagra couldn't bring any amount for goodwill. The journal entry for the same would be:

2022: 16 July Shift 2

Sunil and Ravi are partners in a firm sharing profits in the ratio of 3:1. Amar is admitted for 1/4 share. The Sacrificing ratio of Sunil and Ravi is

2026: 19 May Shift 1

A and B are partners. The net assets of the firm, including fictitious assets of Rs. 5,000, are Rs. 105,000. The total external liabilities of the firm are Rs. 20,000. The normal rate of return is 10% and the average profit of the firm is Rs. 12,000. The value of goodwill as per capitalization of super profit method will be :

2023: 11 June Shift 3

Match List - I with List - II.

List - I	List - II
(A) Profits of firm after admission of partner	(I) Sacrificing Ratio
(B) Goodwill brought in by new partner	(II) Old Ratio
(C) Profit on revaluation	(III) Gaining Ratio
(D) Retiring Partner's Share of Goodwill	(IV) New Ratio

Choose the correct answer from the options given below :

2022: 20 Aug Shift 2

For computing Goodwill by capitalisation of Average Profit method, the following sequence would be followed:

A. Capitalise the average profit on the basis of Normal Rate of Return

B. Ascertain the firm's Capital - Total Assets - Outside Liabilities

C. Ascertain the average profits based on past years' performance

D. Compute the volume of Goodwill

Choose the correct answer from the options given below:

R and S are partners in a firm sharing profits in the ratio of 5:3. They admitted B as a new partner for 1/7th share in the profit. The new profit sharing ratio will be 4:2:1. The sacrificing ratio of R and S is:

Solution

Solution

Step 1: Calculate Old Shares

Step 2: Calculate New Shares

Step 3: Calculate Individual Sacrifices

Step 4: Find Sacrificing Ratio

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