Partnership

Admission

Medium

A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. D is admitted into the firm for 1/4th share in profits, which he gets as 1/8th from A and 1/8th from B. The total capital of the firm is agreed upon as Rs. 1,20,000 and D is to bring in cash equivalent to 1/4th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are Rs. 40,000, Rs. 35,000 and Rs. 30,000 respectively.

The New Profit Sharing Ratio in this case is:

9:5:4:2

9:5:4:6

9:4:3:2

9:3:4:7

✅ Correct Option: 2

Old profit sharing ratio of A, B and C = 3:2:1

Converting to common denominator: A = 3/6, B = 2/6, C = 1/6

D is admitted for 1/4th share, which he acquires:

1/8th from A
1/8th from B

Calculating new shares:

A's new share = Old share - Sacrifice = $\frac{3}{6} - \frac{1}{8}$

Converting to common denominator (24):

A's new share = $\frac{12}{24} - \frac{3}{24} = \frac{9}{24}$

B's new share = Old share - Sacrifice = $\frac{2}{6} - \frac{1}{8}$

Converting to common denominator (24):

B's new share = $\frac{8}{24} - \frac{3}{24} = \frac{5}{24}$

C's new share = Old share (no sacrifice) = $\frac{1}{6} = \frac{4}{24}$

D's new share = $\frac{1}{8} + \frac{1}{8} = \frac{1}{4} = \frac{6}{24}$

Verification: $\frac{9}{24} + \frac{5}{24} + \frac{4}{24} + \frac{6}{24} = \frac{24}{24} = 1$ ✓

New Profit Sharing Ratio = 9:5:4:6

The answer is Option 2: 9:5:4:6

2025: 30 May Shift 2

Which Factor does not Affect the Value of Goodwill-

2023: 20 June Shift 2

A newly admitted partner has the right to -

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 :

2025: 30 May Shift 2

The books of a business showed that the firm's capital employed on December 31, 2015, is Rs. 5,00,000 and the profits for the last five years were: 2011–Rs. 40,000; 2012-Rs. 50,000; 2013-Rs. 55,000; 2014- Rs.70,000 and 2015-Rs. 85,000. Find out the normal profits of the business, given that the normal rate of return is 10%.

2025: 3 June Shift 1

Rajinder and Surinder are partners in a firm sharing profits in the ratio of 4:1. On April 15, 2017, they admitted Narender as a new partner. On that date, there was a balance of Rs. 20,000 in general reserve and a debit balance of Rs. 10,000 in the profit and loss account of the firm. Which among the following statements is correct for transferring profit and loss account?

2025: 3 June Shift 2

Ranjan and Anjan were Partners in a firm sharing profits and losses in 3:2. they admitted Sanjan for 1/4 share of profit on 1 Jan 2024.

Goodwill of the firm will be valued at 3 years purchase of average profit of last 4 years which were

2024: Rs. 80,000

2023: Rs. 1,40,000.

2022: Rs. 2,00,000

2021: Rs. 1,60,000

The goodwill of the reconstituted firm will be

The New Profit Sharing Ratio in this case is:

Solution

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