Partnership

Admission

Medium

common

A and B share profits in the ratio of 3:2. C was admitted as a partner who gets 1/5 share. New profit sharing ratio, if C acquires 3/20 from A and 1/20 from B, would be:

9 : 7 : 4

8 : 8 : 4

6 : 10 : 4

10 : 6 : 4

✅ Correct Option: 1

Old profit sharing ratio between A and B = 3:2

This means:

A's share = $\frac{3}{5}$
B's share = $\frac{2}{5}$

C is admitted for $\frac{1}{5}$ share and acquires it specifically from A and B:

From A: $\frac{3}{20}$
From B: $\frac{1}{20}$

Calculating new shares:

A's new share = $\frac{3}{5} - \frac{3}{20}$

Converting to common denominator: $\frac{3}{5} = \frac{12}{20}$

A's new share = $\frac{12}{20} - \frac{3}{20} = \frac{9}{20}$

B's new share = $\frac{2}{5} - \frac{1}{20}$

Converting to common denominator: $\frac{2}{5} = \frac{8}{20}$

B's new share = $\frac{8}{20} - \frac{1}{20} = \frac{7}{20}$

C's new share = $\frac{3}{20} + \frac{1}{20} = \frac{4}{20}$

New profit sharing ratio = $\frac{9}{20} : \frac{7}{20} : \frac{4}{20}$ = 9 : 7 : 4

2022: 20 Aug Shift 2

Interest on capital will be shown on the Dr. side of Profit and Loss Appropriation A/c and ________ side of Partner's ________ A/c.

2025: 29 May Shift 2

The goodwill based on capitalization of average profit method is valued at Rs 1,80,000. If Net Assets are Rs 8,20,000 then find the capitalized value of average profits.

2025: 30 May Shift 2

A, B and C are partners in a firm. If D is admitted as a new partner then:

2025: 22 May Shift 2

While doing adjustment of partners capital, for the amount of capital to be brought in by the partner, the following entry will be passed:

2022: 23 Aug Shift 2

Calculate the total amount brought in by new partner D including Goodwill share :

2026: 23 May Shift 2

Gaurav and Rana are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 90,000 and Rs. 60,000 respectively. They admitted Rajiv on April 1, 2025 as a new partner for 1/4 share in the future profits. Rajiv brought Rs. 80,000 as his capital. Calculate the value of goodwill of the firm.

A and B share profits in the ratio of 3:2. C was admitted as a partner who gets 1/5 share. New profit sharing ratio, if C acquires 3/20 from A and 1/20 from B, would be:

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