Partnership

Admission

Medium

common

Kim and Sim are partners in a firm sharing profits in 4:3 ratio. They admitted Pim as a new partner for 1/4 share in the profits, which he acquired in the ratio of 3:2 from Kim and Sim. Determine the new profit sharing ratio of the partners.

59:46:40

46:11:59

11:46:59

59:46:35

✅ Correct Option: 4

Given Information:

Kim and Sim's old ratio = 4:3
Pim admitted for 1/4 share
Pim acquires from Kim and Sim in ratio 3:2

Calculating Sacrifices:

Pim's share = $\frac{1}{4}$

This $\frac{1}{4}$ is sacrificed by Kim and Sim in 3:2 ratio.

Kim's sacrifice = $\frac{3}{5} \times \frac{1}{4} = \frac{3}{20}$

Sim's sacrifice = $\frac{2}{5} \times \frac{1}{4} = \frac{2}{20} = \frac{1}{10}$

Calculating New Shares:

Kim's old share = $\frac{4}{7}$

Kim's new share = $\frac{4}{7} - \frac{3}{20} = \frac{80}{140} - \frac{21}{140} = \frac{59}{140}$

Sim's old share = $\frac{3}{7}$

Sim's new share = $\frac{3}{7} - \frac{1}{10} = \frac{30}{70} - \frac{7}{70} = \frac{23}{70} = \frac{46}{140}$

Pim's share = $\frac{1}{4} = \frac{35}{140}$

New Profit Sharing Ratio:

Kim : Sim : Pim = $\frac{59}{140} : \frac{46}{140} : \frac{35}{140}$ = 59:46:35

The correct answer is Option 4.

2025: 3 June Shift 1

Which among the following is Not the method of valuation of goodwill:

2026: 12 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Goodwill	(I) Amount brought by new partner to compensate old partners
(B) Sacrificing ratio	(II) Advantage of reputation, enabling firm to earn super profits
(C) New profit sharing ratio	(III) Ratio in which old partner give up their share
(D) Premium for Goodwill	(IV) Ratio after reconstitution of partnership

Choose the correct answer from the options given below:

2025: 26 May Shift 2

Das and Sinha are partners in a firm sharing profits in 4:1 ratio. They admitted Pal as a new partner for 1/4th share in the profits, which he acquired wholly from Das. The new profit sharing ratio of the partners is-

2025: 2 June Shift 2

A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a partner for 1/3 share, the sacrificing ratio between A and B is

2022: 15 July Shift 2

Ram and Balram are partners in a firm sharing profit and losses in the ratio of 2:1.

An extract of Balance Sheet as of 31st March 2022

Liabilities	Rs.	Assets	Rs.
		Furniture	80,000

If the value of above furniture is overvalued by $33\frac{1}{3}\%$ , choose the value of furniture to be shown in the new Balance Sheet out of the following:

2026: 23 May Shift 2

Arrange the following steps in sequence for calculation of goodwill using Super Profit Method.

A. Calculate the average profit.

B. Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

C. Calculate the super profits by deducting normal profit from the average profits.

D. Calculate goodwill by multiplying the super profits by the given number of years' purchase.

Choose the correct answer from the options given below:

Kim and Sim are partners in a firm sharing profits in 4:3 ratio. They admitted Pim as a new partner for 1/4 share in the profits, which he acquired in the ratio of 3:2 from Kim and Sim. Determine the new profit sharing ratio of the partners.

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)