Navya and Radhey were partners sharing profits and losses in the ratio of 3 : 1. Shreya was admitted for 1/5th share in the profits. Shreya was unable to bring her share of goodwill premium in cash. The journal entry recorded for goodwill premium is given below: Date Particulars LF Debit (₹) Credit (₹) Shreya’s Current A/c ...Dr. 24,000 To Navya’s Capital A/c 8,000 To Radhey’s Capital A/c 16,000 (Being entry for goodwill treatment passed) The new profit-sharing ratio of Navya, Radhey and Shreya will be ______.

Question

KollegeApply · Accepted Answer

The new profit-sharing ratio of Navya, Radhey and Shreya will be 41 : 7 : 12. Explanation: Sacrificing ratio calculated from 8000 : 16000 = 8 : 16 = 1 : 2 Navya sacrifice = $\frac{1}{5}$ xx $\frac{1}{3}$ = $\frac{1}{15}$ Radhey sacrifice = $\frac{1}{5}$ xx $\frac{2}{3}$ = $\frac{2}{15}$ Now the new ratio of Navya = $\frac{3}{4}$ - $\frac{1}{15}$ = `(3 xx 15)/(4 xx 15) - (1 xx 4)/(15 xx 4) = $\frac{45}{60}$ - $\frac{4}{60}$ = $\frac{41}{60}$ Radhey new ratio = $\frac{1}{4}$ - $\frac{2}{15}$ = (1 xx 15)/(4 xx 15) - (2 xx 4)/(15 xx 4) = $\frac{15}{60}$ - $\frac{8}{60}$ = $\frac{7}{60}$ Shreya new ratio = $\frac{1}{5}$ = (1 xx 12)/(5 xx 12) = $\frac{12}{60}$` $\therefore$ New ratio = 41 : 7 : 12

AChoose Your Answer