M and N are partners sharing profit in the ratio of 3:1. They admit O as a new partner on 1st April, 2022. O brings ₹40,000 as his share of premium and the new profit-sharing ratio is 2:2:1. Identify the correct option related to treatment of Goodwill.
Premium for Goodwill A/c Dr——— ₹40,000 N’s Capital A/c Dr——— ₹30,000 To M’s Capital A/c——— ₹70,000
Goodwill brought by a new partner is credited to the sacrificing partners in their sacrificing ratio. Here, M and N sacrifice in the ratio of 4:3. Therefore, M’s Capital A/c gets ₹40,000 and N’s Capital A/c gets ₹30,000, making option 4 correct.
Important Questions from Reconstitution of a Partnership : Admission of a Partner
Anita and Bindu are partners in a firm sharing profits in the ratio of 3:2. They admitted Meria as a new partner for 1/4th share. The new profit-sharing ratio between Anita and Bindu will be 2:1. What will be their sacrificing ratio?
Where a new partner brings his share of capital and goodwill in cash. Identify the correct treatment from the following options:
A and B share profits in the ratio of 3:4. They admitted C for 1/5th share in future profits with a guarantee that his share of profits shall be at least ₹30,000. In the above case, any deficiency to C will be borne by A and B in the ratio of:
A and B are partners in a partnership firm, sharing profits in a 3:2 ratio. They agreed to admit a new partner C. A sacrifices 2/5 from his share and B sacrifices 1/5 from his share. Calculate the new profit-sharing ratio between A, B, and C.
At the time of Revaluation of Assets and Liabilities during the admission of a partner:
