Parvan and Rahim are partners sharing profits and losses in the ratio of 3 : 2. karan is admitted as a partner with 1/4th share in profits. karan was unable to bring his share of goodwill premium in cash.
Parvan and Rahim are partners sharing profits and losses in the ratio of 3 : 2. karan is admitted as a partner with 1/4th share in profits. karan was unable to bring his share of goodwill premium in cash.
The Journal entry recorded for goodwill premium is given below:
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| Karan’s Current A/c Dr. To Parnav’s Capital A/c To Rahim’s Capital A/c (Adjustment of goodwill made) |
30,000 | 20,000 10,000 |
New profit sharing ratio of Parnav, Rahim, and Karan will be
a) 2 : 1 : 1
b) 3 : 3 : 2
c) 4 : 5 : 3
d) 26 : 19 : 15
Anurag Pathak Changed status to publish June 8, 2023
Ans – d)
Solution:-
Sacrificing ratio of Parnav and Rahim = 20,000 : 10,000 = 2 : 1
Karan 1/4th share is given by parnav and Rahim is 2 : 1
Parnav sacrifices = 1/4 × 2/3 = 2/12
Rahim Sacrifices = 1/4 × 1/3 = 1/12
Parnav new share = 3/5 – 2/12 = 36 – 10/60 = 26/60
Rahim new share = 2/5 – 1/12 = 24 – 5/60 = 19/60
New profit sharing ratio after making base equal
26/60  : 19/60 : 1/4 × 15/15
26 : 19 : 15
Anurag Pathak Changed status to publish June 8, 2023
