Question

A & B are partners sharing the profit in the ratio of $3:2$. They take C as the new partner, who brings in Rs. $25,000$ against capital and Rs. $10,000$ against goodwill. New profit sharing ratio is $1:1:1$. In what ratio will this amount will be shared among the old partners A & B.

• A. Rs. $8,000$ : Rs. $2,000$
• B. Rs. $5,000$ : Rs. $5,000$
• C. Old partners will not get any share in the goodwill brought in by C
• D. Rs. $6,000$ : Rs. $4,000$

Answer 1

The correct option is A Rs. $8,000$ : Rs. $2,000$

The goodwill bought in by C will be transferred to the capital account of A and B in their sacrificing ratio.

Sacrificing ratio = Old Ratio - New Ratio

Thus, A = $\frac{3}{5}-\frac{1}{3}=\frac{4}{15}$

B= $\frac{2}{5}-\frac{1}{3}=\frac{1}{15}$

Hence, Sacrificing ratio = 4:1

Thus, Goodwill transferred to A's Capital Account = $10000\ast \frac{4}{5}=8000$

Goodwill transferred to B's Capital Account = $10000\ast \frac{1}{5}=2000$

Therefore, The ratio is 8000:2000 = 4:1