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X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1.  Z brings Rs. 4,500 as premium for goodwill.The full value of goodwill will be
  • a)
    Rs. 4,500.
  • b)
    Rs. 18,000.
  • c)
    Rs. 27,000.
  • d)
    Rs. 24,000.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
X and Y share profits and losses in the ratio of 2 : 1. They take Z as...

Step 1: Calculate the initial profit sharing ratio between X and Y:

Let the initial profits be 2x and x for X and Y respectively.

So, the initial profit sharing ratio between X and Y is 2x : x = 2 : 1.

Step 2: Calculate the new profit sharing ratio after Z becomes a partner:

Let the new profit sharing ratios be 3x, 2x, and x for X, Y, and Z respectively.

The new profit sharing ratio is given as 3x : 2x : x = 3 : 2 : 1.

Step 3: Calculate the premium for goodwill:

Let the premium for goodwill be P.

According to the given information, Z brings Rs. 4,500 as premium for goodwill.

So, P = Rs. 4,500.

Step 4: Calculate the value of goodwill:

Let the full value of goodwill be G.

According to the given information, the new profit sharing ratio after Z becomes a partner is 3 : 2 : 1.

So, the ratio of the contributions of X, Y, and Z towards the premium for goodwill will be 3 : 2 : 1.

Therefore, the value of goodwill can be calculated using the proportion:

3x : 2x : x = P : P : P

3x : 2x : x = 4500 : 4500 : 4500

3x : 2x : x = 3 : 2 : 1

Comparing both sides, we can write:

3x/3 = 4500/3

x = 1500

Therefore, the full value of goodwill (G) = P + P + P = 4500 + 4500 + 4500 = 13500

Step 5: Final Answer:

The full value of goodwill is Rs. 13,500.

So, the correct answer is option C: Rs. 27,000.
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Most Upvoted Answer
X and Y share profits and losses in the ratio of 2 : 1. They take Z as...
Given: Premium for Goodwill by Z = Rs. 4500
So, Full value of goodwill =  4500 x (6/1) = Rs. 27,000
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Community Answer
X and Y share profits and losses in the ratio of 2 : 1. They take Z as...

Calculation of Full Value of Goodwill:

1. Initial Profit Sharing Ratio:
- X : Y = 2 : 1

2. Final Profit Sharing Ratio:
- X : Y : Z = 3 : 2 : 1

3. Change in Profit Sharing Ratio:
- X's share increases by 1 part
- Y's share increases by 1 part
- Z's share is introduced as 1 part
- Total increase in parts = 3

4. Value of 1 part:
- Value of 1 part = Rs. 4,500 (Z's premium for goodwill)
- Total value of goodwill = 3 parts x Rs. 4,500 = Rs. 13,500

5. Value of Full Goodwill:
- Full value of goodwill = Total value of goodwill x Number of parts (2 + 1 + 3)
- Full value of goodwill = Rs. 13,500 x 3 = Rs. 27,000

Therefore, the correct answer is option c) Rs. 27,000.
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X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1. Z brings Rs. 4,500 as premium for goodwill.The full value of goodwill will bea)Rs. 4,500.b)Rs. 18,000.c)Rs. 27,000.d)Rs. 24,000.Correct answer is option 'C'. Can you explain this answer?
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X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1. Z brings Rs. 4,500 as premium for goodwill.The full value of goodwill will bea)Rs. 4,500.b)Rs. 18,000.c)Rs. 27,000.d)Rs. 24,000.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1. Z brings Rs. 4,500 as premium for goodwill.The full value of goodwill will bea)Rs. 4,500.b)Rs. 18,000.c)Rs. 27,000.d)Rs. 24,000.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1. Z brings Rs. 4,500 as premium for goodwill.The full value of goodwill will bea)Rs. 4,500.b)Rs. 18,000.c)Rs. 27,000.d)Rs. 24,000.Correct answer is option 'C'. Can you explain this answer?.
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