Question number 9... fast!!!
Q9. Arun, Barun and Chug are partners dealing in musical instruments sharing profit in 3 : 2 : 2. They admitted Mallika, the famous classical dancer into partnership for share which she acquired from Arun, Barun and Chug in 2 : 2 : 1 ratio respectively. You are required to :
(i) Identify the value involved in taking Mallika as a partner.
(ii) Calculate the new profit sharing ratio.
Dear Student
1. Value :- Goodwill generation through establised brand.
2.
Regards
1. Value :- Goodwill generation through establised brand.
2.
| Calculation of New PSR | ||||
| Particulars | Arun | Barun | Chug | Mallika |
| Old Ratio | 3/7 | 2/7 | 2/7 | 0 |
| Share of New Partner | 1/5 | |||
| Total share sacrificed by Old partners for new partner | 2/25 | 2/25 | 1/25 | |
| (1/5 x 2/5) | (1/5 x 2/5) | (1/5 x 1/5) | ||
| New Share of Arun and Barun | 61/175 | 36/175 | 43/175 | |
| (3/7 - 2/25) | (2/7 - 2/25) | (2/7 - 1/25) | ||
| Therefore New PSR | 61/175 | 36/175 | 43/175 | 35/175 |
Regards