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A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.
  • a)
    8,000:2,000
  • b)
    5,000:5,000
  • c)
    Old partners will not get any share in the goodwill brought in by C
  • d)
    6,000:4,000
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A and B are partners sharing the profit the ratio of 3:2. They take C ...
And B?

Let's calculate the new capital brought in by A and B after the addition of C as a partner:

A's new capital = A's old capital + A's share of goodwill
= Rs. 0 + Rs. 10,000
= Rs. 10,000

B's new capital = B's old capital + B's share of goodwill
= Rs. 0 + Rs. 10,000
= Rs. 10,000

Now, let's calculate the new profit sharing ratio among A, B, and C:

Total capital = A's new capital + B's new capital + C's capital
= Rs. 10,000 + Rs. 10,000 + Rs. 25,000
= Rs. 45,000

A's new profit share = (A's new capital / Total capital) * Total profit
= (Rs. 10,000 / Rs. 45,000) * Total profit
= 2/9 * Total profit

B's new profit share = (B's new capital / Total capital) * Total profit
= (Rs. 10,000 / Rs. 45,000) * Total profit
= 2/9 * Total profit

C's profit share = (C's capital / Total capital) * Total profit
= (Rs. 25,000 / Rs. 45,000) * Total profit
= 5/9 * Total profit

Given that the new profit sharing ratio is 1:1:1, we can equate the profit shares of A and B:

2/9 * Total profit = 1/3 * Total profit

Cross-multiplying, we get:

2/9 * Total profit = 1/3 * Total profit
2/9 = 1/3
2 * 3 = 9 * 1
6 = 9

The equation is not true, which means the profit shares of A and B are not equal. Therefore, the given information is inconsistent.
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Community Answer
A and B are partners sharing the profit the ratio of 3:2. They take C ...
Take out sacrificing ratio of old partners as premium for goodwill will be distributed in old partners in sacrificing ratio than answer is 8000 and 2000
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A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.a)8,000:2,000b)5,000:5,000c)Old partners will not get any share in the goodwill brought in by Cd)6,000:4,000Correct answer is option 'A'. Can you explain this answer?
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A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.a)8,000:2,000b)5,000:5,000c)Old partners will not get any share in the goodwill brought in by Cd)6,000:4,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.a)8,000:2,000b)5,000:5,000c)Old partners will not get any share in the goodwill brought in by Cd)6,000:4,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.a)8,000:2,000b)5,000:5,000c)Old partners will not get any share in the goodwill brought in by Cd)6,000:4,000Correct answer is option 'A'. Can you explain this answer?.
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