Goodwill

x y z are partners profit sharing ratio 1/2, 1/3, 1/6, respectively.. y retired on 31st mar 20x6.. goodwill of the firm valued rs 9000 and not shown in the books of the firm. after y's retirement x nd z are agreed to share the future profits in the ratio of 3:2..
calculate 
1,gaining ratio
2, y share of goodwill
3, in what proportion(amount) x and z will distribute y share of goodwill.

pls explain.....
 

Replies (6)

Profit sharing ratio of x, y and z is = 3:2:1  and y's share in goodwill is 9000 x 1/3 = 3000

Gaining ratio: x = 3/5 - 2/6 = 3/30 

                    z = 2/5 - 1/6 = 7/30 

So, gaining ration of x and z is 3:7

so x and z should pay to y on account of his share of goodwill:

x = 3000 x 3/10 = 900

z = 3000 x 7/10 = 2100

In case of any such doubts you may visit www.jbsclasses.com 

sir gainig ratio is 3/30 and 7/30.... 

how come u took 3:7??

pls explain

Since the denominator is same in both the quaantities, hence their numerators can be compared.

sir im still confused how you take 3/10 and 7/10?

where the 10 come from?

pls explain sir..

got the answer...

(old ratio 3/6, 2/6 , 1/6 for x y z respctvly)

x and z shares the 2/6( (y's share) in the ratio of 3/30 and 7/30

therefore... divide the gaining ratio by 2/6.

by doing so .....for x= 3/30 / 2/6 or    3/30 * 6/2 we get 3/10

                       for z= 7/30 / 2/6 or    7/30 * 6/2 we get 7/10...

So, gaining ratio of x and z is 3:7 so x and z should pay to y on account of his share of goodwill: x = 3000 x 3/10 = 900 z = 3000 x 7/10 = 2100

 

 

Dear Harish, let me clear you the logic.  Y's share in the firm is 2/6 or 1/3.  As explained above gaining ratio comes to 3/30 : 7/30.  If you divide 3/30 by 7/30 you will get 3:7.  Pl. don't mid it will be of great help to you if you just refer to the chapter on ratios (class IX Mathematics).

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