# Commerce Accountancy Chapter 5 - Admission Of A Partner

#### Question 16:

Gautam and Yashica are partners sharing profits and losses in the ratio of 3 : 2. They admit Asma into partnership. Gautam gives 1/3rd of his share while Yashica gives 1/10th from his share to Asma. Calculate new profit-sharing ratio and sacrificing ratio.

Old Ratio of Gautam and Yashica is 3 : 2.

Gautam 's sacrifice=1/3×3/5=3/15 Yashica 's sacrifice=1/10 Sacrificing Ratio=3/15:1/10 or  2 :1

New Ratio = Old Share − Share Sacrificed

Gautam 's new share=3/5-3/15=6/15 Yashica 's new share=2/5-1/10=3/10 Asma's share=3/15+1/10=9 30 New Ratio=6/15 : 3/10 : 9/30 = 4 :3 : 3

#### Question 17:

A, B and are partners sharing profits in the ratio of 2 : 2 : 1. D is admitted as a new partner for 1/6th share. C will retain his original share. Calculate the new profit-sharing ratio and sacrificing ratio.

Calculation of New Profit Sharing Ratio

Old Ratio of A, B and  is 2 : 2 : 1

. D is admitted for 1/6th share while . C will retain his 1/5 original share

Remaining  share=1-1/6-1/5

=30-5-6/30=19/30

Remaining  share will be shared by A and B in 2:2  (old).

 A’s =19/30×2/4 =38/120 B’s =19/30×2/4 =38/120 C’s =1/5×24/24 =24/120 D’s =1/6×20/20 =20/120 A B C D 38 : 38 : 24 : 20 19 : 19 : 12 : 10

*Since nothing is mentioned about the sacrifice made by the existing partners, it is assumed that A and B sacrifice in their old ratio.

Calculation of Sacrificing Ratio

Sacrificing Ratio =Old ratio- new ratio

 A’s =2/5-19/60 =24-19/60=5/60 B’s =2/5-19/60 =24-19/60=5/60

A : B = 5:5=1:1

#### Question 18:

Amit and Vidya are partners sharing profits in the ratio of 3 : 2. They admit Chintan into partnership who acquires 1/5th of his share from Amit and 4/25th share from Vidya. Calculate New Profit-sharing Ratio and Sacrificing Ratio.

Calculation of New Profit Sharing Ratio

Amit: Vidya=3:2 (Old Ratio)

Chintan acquires 1/5th of his share from Amit And,

Remaining 4/5th (1−1/5) of his share from Vidya.

If 4/5th share of Chintan =4/25

Chintan 's share=4/25×54=5/25

Amit 's sacrifice=1/5×1/5=1/25

Vidya 's sacrifice=4/25

Amit 's new share=3/5−1/25=1/5−1/25=14/25

Vidya 's new share=2/5−4/25=10−4/25=6/25

Chintan 's new share=1/5×5/5=5/25

Amit: Vidya:R=14:6:5

Sacrificing Ratio=1:4

#### Page No 5.87:

Question 19: Gold and Silver are partners sharing profits and losses in the ratio of 2 : 5. They admit Copper on the condition that he will bring    ` 14,000 as his share of goodwill to be distributed between Gold and Silver. Copper's share in the future profits or losses will be 1/4th. What will be the new profit-sharing ratio and what amount of goodwill brought in by Copper will be received by Gold and Silver

 A B OLD RATION 2  : 5

Let the combined share of A, B and C be = 1

Combined share of A and B after C’s admission = 1 − C’s share

=1-1/4

=3/4

New Ratio = Old Ratio - Combined share of A and B

 A’s =2/7×3/4 =6/28 B’s =5/7×3/4 =15/28

New profit sharing ratio=

 A B C 6/28 : 15/28 : 1/4 6/28 : 15/28 : 7/28 6 : 15 : 7

Distribution of C’s share of Goodwill  OR  A and B will be covered

C’s share of Goodwill =    ` 14,000

A will get =14,000×2/7=4,000

B will get =14,000×5/7=10,000

#### Page No 5.87:

Question 20: Vimal and Nirmal are partners in a firm sharing profits and losses in the ratio of 3: 2. A new partner Kailash is admitted. Vimal gives 1/5th of his share and Nirmal gives 2/5th of his share in favour of Kailash. For the purpose of Kailash's admission, goodwill of the firm is valued at 75,000 and Kailash brings his share of goodwill in cash which is retained in the business. Journalise the above transactions.

Old Ratio of Vimal and Nirmal is 3:2

Share of Profits Kailash will get from Vimal 1/5th of his share 3/5

= 3/5×1/5=3/25

Share of Profits Kailash will get from Nirmal 2/5th of his share 2/5

= 2/5×2/5=4/25

Remaining of –

Vimal  =  3/5 - 3/25 = 12/25

Nirmal= 2/5 - 4/25 = 6/25

Share of Kailash= 3/25 + 4/25=3+4/25=7/25

New Profit sharing ratio of Vimal, Nirmal and Kailash= 12/25 : 6/25 : 7/25

Kailash brings his share of goodwill in cash =75,000 × 7/25 = 21,000

Vimal and Nirmal will be compensated in sacrificing =3:4

Vimal =21,000×3/7=9,000

Nirmal =21,000×4/7=12,000

Journal Entry for Goodwill:

 Bank a/c    To Premium for Goodwill a/c (Being Goodwill brought in Cash) Dr. 21,000     21,000 21,000     21,000 Premium for Goodwill a/c    To Vimal’s Capital a/c    To Nirmal Capital a/c (Being partners compensated in sacrificing ratio 3:4)