A and B are in partnership sharing profits in the ratio of 3 : 2. They take C as a new partner. Goodwill of the firm is valued at Rs3,00,000 and C brings Rs30,000 as his share of goodwill in cash which is entirely credited to the Capital Account of A. What will be the new profit sharing ratio?

5:4:1

Goodwill of the firm on C's admission = Rs. 3,00,000
Premium for goodwill brought in cash by C = Rs. 30,000
So, Cs share in future profit of the firm = Rs. 30,000/Rs. 3,00,000 = 1/10
As account has only been credited by the premium brought in by C So, A's Sacrificing Share = Profit Share of C = 1/10
New Profit share of A = Old profit share - Sacrificing share
New profit share of A = 3/5 -1/10 = 5/10
Therefore, New Profit Sharing Ratio = 5/10:4/10:1/10 = 5:4:1.