Practicing Success
X and Y are partners in a firm sharing profits in the ratio of 5 : 3. They admitted Z as a new partner. The new profit sharing ratio will be 4 : 3 : 2. The firm's goodwill on Z's admission was valued at Rs1,26,000. But Z could not bring any amount of goodwill in Cash. Credit will be given to which partner? |
X Rs17,500; Y Rs10,500 X Rs16,000; Y Rs12,000 X Rs22,750; Y Rs5,250 A Rs1,02,375; Y Rs23,625 |
X Rs22,750; Y Rs5,250 |
Old ratio is 5:3 |