Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th profits, for which he paid ₹60,000 against capital and ₹30,000 against goodwill. Find the capital balance for each partner taking Z's capital as base capital.

Options:

Rs1,50,000; Rs60,000 and Rs60,000

Rs1,50,000; Rs60,000 and Rs90,000

Rs1,50,000; Rs90,000 and Rs60,000

Rs1,50,000; Rs90,000 and Rs90,000

Correct Answer:

Rs1,50,000; Rs90,000 and Rs60,000

Explanation:

 Let total share = 1
Remaining share= 1 - 1/5 = 4/5
A= 5/8 * 4/5 = 20/40 ; B= 3/8 * 4/5 = 12/40 ; C= 1/5 * 8/8 = 8/40 = 20:12:8
New Profit sharing ratio 5 :3 :2.
Capitals = 60000 * 5 = 300000
A - 300000 * 5/10 = 150000
B - 300000 * 3/10 = 90000