Practicing Success
A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the partnership with 1/4th share in future profits. The new profit sharing ratio is 5 : 4 : 3. The firm’s goodwill on C’s admission was valued at ₹1,44,000. But C could not bring any amount for goodwill in Cash. Credit will be given to the old partners in which of the following:: |
A Rs80,000; B Rs64,000 A Rs20,000; B Rs16,000 A Rs1,05,600; B Rs38,400 A Rs26,400; B Rs9,600 |
A Rs26,400; B Rs9,600 |
The correct answer is option 4- A Rs26,400; B Rs9,600. Old ratio is 3:2 Share of C in goodwill = 3/12*144000 |