Partnership

Admission

Medium

common

Vijay and Manohar share profits and losses in the ratio of 2:1. They admit Prakash as a partner with 1/4 share in profits with a guarantee that his share of profit will be at least Rs. 50,000. The net profit of the firm for the year ending March 31, 2015, was Rs. 1,60,000. Calculate the amount of profit Vijay will get:

Rs. 60,333

Rs. 73,333

Rs.50,300

Rs. 80,333

✅ Correct Option: 2

Total profit = Rs. 1,60,000

Prakash's share = $\frac{1}{4}$ of profit = $\frac{1}{4} \times 1,60,000$ = Rs. 40,000

Since Prakash has a guarantee of minimum Rs. 50,000, but his actual share is only Rs. 40,000, he will receive the guaranteed amount of Rs. 50,000.

Deficiency to be borne by old partners = 50,000 - 40,000 = Rs. 10,000

The remaining profit after Prakash's normal share = 1,60,000 - 40,000 = Rs. 1,20,000

This Rs. 1,20,000 is distributed between Vijay and Manohar in their profit-sharing ratio of 2:1:

Vijay's share = $1,20,000 \times \frac{2}{3}$ = Rs. 80,000

Manohar's share = $1,20,000 \times \frac{1}{3}$ = Rs. 40,000

The deficiency of Rs. 10,000 is also borne by Vijay and Manohar in their ratio 2:1:

Vijay bears = $10,000 \times \frac{2}{3}$ = Rs. 6,667

Manohar bears = $10,000 \times \frac{1}{3}$ = Rs. 3,333

Final profit for Vijay = 80,000 - 6,667 = Rs. 73,333

Verification: Vijay (73,333) + Manohar (36,667) + Prakash (50,000) = Rs. 1,60,000 ✓

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For the right to get a share in future profits of a partnership firm, a newly admitted partner will have to bring :-

2026: 24 May Shift 1

Ramesh and Lakshay are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 90,000 and Rs. 70,000 respectively. They admitted Somesh on April. 1, 2025 as a new partner for 1/5 share in the future profits. Somesh brought Rs. 90,000 as his capital. Calculate the value of goodwill of the firm and Somesh's share of goodwill.

2025: 14 May Shift 2

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2026: 20 May Shift 1

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