X and Y are partners sharing profits in the ratio of 3 : 1. They admit Z as a partner who pays ₹ 4,000 as goodwill. The new profit ratio being 2 : 1 : 1 among X, Y and Z respectively. The amount of goodwill will be credited to ................. .
X only
Goodwill brought in by a new partner is credited to the old partners in their sacrificing ratio, i.e. old share minus new share.
Old ratio X : Y = 3 : 1, i.e. \(\frac{3}{4}\) and \(\frac{1}{4}\). New ratio X : Y : Z = 2 : 1 : 1, i.e. \(\frac{2}{4}\), \(\frac{1}{4}\) and \(\frac{1}{4}\).
X's sacrifice \(= \frac{3}{4} - \frac{2}{4} = \frac{1}{4}\); Y's sacrifice \(= \frac{1}{4} - \frac{1}{4} = 0\).
Since only X gives up a share for Z, the entire goodwill of ₹ 4,000 brought by Z is credited to X's capital account.
Hence, the goodwill will be credited to X only.
Similar Questions
By way of .............. company can keep its shareholders happy without impairing the financial position and liquidity of the company.
Pre-acquisition profit in subsidiary company is considered as :
The ratio of variable cost to sales is 70%. The B.E. Point occurs at 80% capacity. Find 100% capacity sales when fixed cost is ₹ 6,00,000. Assume that P/V Ratio, variable cost ratio are complement each other.
What is the index of conservatism in capital structure ?
Which of the following is not a principle of WTO ?
Disequilibrium in the balance of payment is caused by which economic factor ?
Identify a factor that doesn’t play an important role in attracting FDI.
Which of the following is not a characteristic of joint venture ?
Who proposed the theory of competitive advantage ?
Which of the following is not the level of Regional economic integration ?
Important Questions from Mixed Topic (MH-SET)
.................... is a client server application that identifies each host on the internet with a unique user-friendly name.
Every OS has a ................ or .......... which primarily resides in the main memory of the computer to perform some of the basic functions of the OS.
(i) Kernel
(ii) Interface
(iii) Nucleus
(iv) Compiler
Codes:
Which of the following are referred to as low level language?
(i) Machine language
(ii) Assembly language
(iii) High level language
(iv) Natural language
Codes:
Match the following:
List I List II (a) New York Public Library (i) Shelv AR (b) Miami University Augmented Research Group (ii) Smart library (c) Oula University Library (iii) Wolf Walk (d) North Carolina State University (iv) Find the future Codes:
Which part of the QR code represents the encoded data?
