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

Given:

Old ratio of Vijay and Manohar = 2:1
Prakash admitted with 1/4 share
Guarantee: Prakash's minimum profit = Rs. 50,000
Total profit = Rs. 1,60,000

Calculating Prakash's normal share:

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

Since the guaranteed amount (Rs. 50,000) is more than the normal share (Rs. 40,000), Prakash will receive the guaranteed amount of Rs. 50,000.

Distribution of remaining profit:

Remaining profit after Prakash's guaranteed share = 1,60,000 - 50,000 = Rs. 1,10,000

This remaining profit is shared between Vijay and Manohar in their old ratio of 2:1.

Vijay's share = $\frac{2}{3} \times 1,10,000$ = Rs. 73,333.33

Manohar's share = $\frac{1}{3} \times 1,10,000$ = Rs. 36,666.67

Verification:

Vijay: Rs. 73,333
Manohar: Rs. 36,667
Prakash: Rs. 50,000
Total: Rs. 1,60,000 ✓

The deficiency in Prakash's share (50,000 - 40,000 = Rs. 10,000) is borne by Vijay and Manohar in their profit-sharing ratio, which is why their shares are reduced from what they would have received if all three partners shared in the normal manner.

Answer: Option 2: Rs. 73,333

2026: 20 May Shift 1

At the time of admission of a new partner, if Profit and Loss Account debit balance exist in the books, then which of the following entry will be done in order to distribute it?

2024

On the date of admission of a partner there was a balance of ₹ 45,000 in the account of machinery. It was found undervalued by 10%. The value of machinery will appear in the new Balance Sheet at:

2025: 13 May Shift 2

Arrange in correct sequence at a time of admission of partner-

(A) Adjustments of capital accounts.

(B) Valuation of goodwill

Choose the correct answer from the options given below:

2026: 20 May Shift 1

X and Y are partners in a firm sharing profits in the ratio of 3:2. They admitted Z as a new partner for 1/4 share. The new profit sharing ratio between X and Y will be 2:1. Calculate their sacrificing ratio.

2025: 14 May Shift 2

Arrange Steps For Capitalisation of Super Profits:

(A) Calculate average profit for the past years, as specified.

(B) Calculate the capital of the firm.

(D) Multiply the super profits with the required rate of return multiplier

(E) Calculate super profits by deducting normal profits from average profits.

Choose the correct answer from the options given below:

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:

Solution

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