PLSS URGENT 13th ques
Q13. Ram and Shyam are partners. Their profit sharing ratio is 3 : 2 Mohan joins the partnership for 1/4th share in profit (of which he acquires 2/3 from Ram and 1/3 from Shyam). Mohan brings in Rs. 6,00,000 for capital and Rs. 2, 40,000 for goodwill. 1/4 of the amount of goodwill is withdrawn by old partners.
Pass necessary journal entries and find out the new profit sharing ratio.
Dear Student
Sacrificing ratio given = 2:1.
Regards
| Journal | ||||
| Date | Particulars | Debit | Credit | |
| Bank A/c | Dr. | 840,000 | ||
| To Mohan's Capital A/c | 600,000 | |||
| To Premium for Goodwill A/c | 240,000 | |||
| (Being ram brought his capital and share of goodwill) | ||||
| Premium for goodwill A/c | Dr. | 240,000 | ||
| To Ram's Capital A/c (2,40,000 x 2/3) | 160,000 | |||
| To Shyam's Capital A/c (2,40,000 x 1/3) | 80,000 | |||
| (Being premium for goodwill divided between sacrificing partners) | ||||
| Ram's Capital A/c | Dr. | 80,000 | ||
| Shyam's Capital A/c | Dr. | 40,000 | ||
| To Bank A/c | 120,000 | |||
| (Beingg half goodwill withdrawn by partners) | ||||
| Calculation of New PSR | |||
| Particulars | Ram | Shyam | Mohan |
| Old Ratio | 3/5 | 2/5 | 0 |
| Share of New Partner | 1/4 | ||
| Total share sacrificed by Old partners for new partner | 1/6 | 1/12 | |
| (1/4 x 2/3) | (1/4 x 2/3) | ||
| New Share of Ram and Shyam | 26/60 | 19/60 | |
| (3/5 - 1/6) | (2/5 - 1/12) | ||
| Therefore New PSR | 26/60 | 19/60 | 1/4 or 15/60 |
Sacrificing ratio given = 2:1.
Regards