1).a,b,c are partners showing profits in the ratio of 4:3:2.d is admitted for 2/9 th share of profits & brings 30000 as his capital & 10000 for his share of goodwill.the new sharing ratio between partners will be 3:2:2:2.goodwill a/c is credited in the capital accounts of -----------?
2).a,r,s are partners sharing profit & losses in the ratio of 5:4:3.s retires & if a & r shares profit of s in 4:3 then new profit sharing ratio is-----------------?
1) a&b
2) 47:37
please elaborately solve those problem.
in first problem of the above,why goodwill is credited in a & b.why not c?-------------------
QUESTION No 1. THERE ARE VARIOUS TREATMENT OF GOODWILL
ALTERNATIVE-1 Cash A/C...............Dr 40000
To D's Capital A/C 40000
D's Capital A/C...................Dr 10000
To A's Capital A/C 5000
To B's Capital A/C 5000
(Being the goodwill credited to the sacrificing partners in
their sacrificing ratio 1:1)
ALTERNATIVE- 2 Cash A/C...........................Dr 40000
To D's Capital A/C 30000
To Goodwill A/C 10000
Goodwill A/C.................Dr 10000
To A's Capital A/C 5000
To B's Capital A/C 5000
(Naration same as above)
Sacriticing Ratio (Old ratio - New ratio)
A = 4/9 - 3/9 = 1/9 (Sacrifice)
B = 3/9 - 2/9 = 1/9 (Sacrifice)
C = 2/9 - 2/9 = 0 (No Sacrifice)
Therefore, Sacrificing Ratio A : B = 1/9 : 1/9 or 1 : 1
QUESTION 2
a r
(A) Existing Ratio 5/12 4/12
(B) Shares acquired from s 3/12 * 4/7 3/12 * 3/7
= 12/84 = 9/84
(C) New Ratio 5/12 + 12/84 4/12 + 9/84
47/84 37/84
47:37
PLEASE SEE THE WORKING OF Q -1 THAT C DOES NOT MAKE ANY SACRIFICE IN D'S ADMISSION.
SO, NOTHING WILL BE CREDITED IN C'S CAPITAL A/C
second answer by the above person is totally wrong
47: 37
QUESTION NO 2
EXISTING RATIO a : r : s 5/12 : 4/12 : 3/12
Shares acquires from s (In the ratio of 4:3) by a and r
a 3/12 * 4/7 = 12/84
r 3/12 * 3/7 = 9/84
New Ratio
a 5/12 + 12/84 = 47/84
r 4/12 + 9/84 = 37/84
a : r 47 : 37
thanks to all-----------------------------------------------------------infinite.
IN above question goodwill are divided in scrifice atio becouse A nd B Sacrifise and C ratio are same as campared to old ratio so that goodwill are share A nd B only
Sacrifice ratio Calculate by
Old Ratio - New Ratio n = Sacrifice Ratio
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