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A and B are partners sharing profits and losses in the ratio of 3:2. C is admitted for 1/4 share and for which Rs 30000 and Rs 10000 are credited as a premium for goodwill to A and B respectively. The new profit sharing ratio of A:B:C will be?
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A and B are partners sharing profits and losses in the ratio of 3:2. C...
Understanding the Current Profit-Sharing Ratio
A and B currently share profits and losses in the ratio of 3:2. This means:
  • A's Share: 3 parts
  • B's Share: 2 parts
  • Total Parts: 3 + 2 = 5 parts


Admission of C
C is admitted into the partnership for a 1/4 share, meaning C will receive 1/4 of the total profits. This translates to:
  • C's Share: 1/4 of total profits
  • Remaining Share: 3/4 for A and B combined


Calculating A and B's New Shares
Since C's share is 1/4, A and B will share the remaining 3/4 in their existing ratio (3:2). The total remaining parts are:
  • A's New Share: (3/5) * (3/4) = 9/20
  • B's New Share: (2/5) * (3/4) = 6/20
  • C's Share: 5/20 (equivalent to 1/4)


New Profit-Sharing Ratio
Now, we can summarize the new profit-sharing ratio for A, B, and C:
  • A's Share: 9/20
  • B's Share: 6/20
  • C's Share: 5/20


Thus, the new profit-sharing ratio of A:B:C is 9:6:5.
Conclusion
This new ratio reflects the contributions and the goodwill premium received by A and B upon admitting C into the partnership.
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A, B and C are partners sharing profits and losses in the ratio of 2 : 1 : 1 respectively.On 31st March, 2012, their balance sheet was as follows:A died on 1st April, 2012. The firm had taken a joint life policy for Rs 1,20,000, the payment for which was received by the firm. According to the partnership deed, on retirement or death of a partner, the goodwill of the firm was to be valued at 1½ times of the average profit for the last four years.The profits for the last four years were Rs 64,000, Rs 69,000, Rs 72,000 and Rs 75,000 respectively. For paying the amount due to A’s legal representative, B and C brought as much cash as would bring their capitals in profit sharing ratio and the firm would have a cash balance of Rs 3,000.Pass journal entries to record the above mentioned transactions and prepare partners’ capital accounts. in this question how b capital become 88750 and c capital will become 68750?

A, B and C are partners sharing profits and losses in the ratio of 2 : 1 : 1 respectively.On 31st March, 2012, their balance sheet was as follows:A died on 1st April, 2012. The firm had taken a joint life policy for Rs 1,20,000, the payment for which was received by the firm. According to the partnership deed, on retirement or death of a partner, the goodwill of the firm was to be valued at 1½ times of the average profit for the last four years.The profits for the last four years were Rs 64,000, Rs 69,000, Rs 72,000 and Rs 75,000 respectively. For paying the amount due to A’s legal representative, B and C brought as much cash as would bring their capitals in profit sharing ratio and the firm would have a cash balance of Rs 3,000.Pass journal entries to record the above mentioned transactions and prepare partners’ capital accounts.?

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A and B are partners sharing profits and losses in the ratio of 3:2. C is admitted for 1/4 share and for which Rs 30000 and Rs 10000 are credited as a premium for goodwill to A and B respectively. The new profit sharing ratio of A:B:C will be?
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A and B are partners sharing profits and losses in the ratio of 3:2. C is admitted for 1/4 share and for which Rs 30000 and Rs 10000 are credited as a premium for goodwill to A and B respectively. The new profit sharing ratio of A:B:C will be? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A and B are partners sharing profits and losses in the ratio of 3:2. C is admitted for 1/4 share and for which Rs 30000 and Rs 10000 are credited as a premium for goodwill to A and B respectively. The new profit sharing ratio of A:B:C will be? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits and losses in the ratio of 3:2. C is admitted for 1/4 share and for which Rs 30000 and Rs 10000 are credited as a premium for goodwill to A and B respectively. The new profit sharing ratio of A:B:C will be?.
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