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Question : Vimal and Kamal are partners sharing profits in the ratio of 4: 1. They admit Amal as a new partner who brings Rs. 1,50,000 as his share of goodwill (premium). Amal is entitled to a 1/3rd share in profits. As between themselves, Vimal and Kamal agree to share future profits and losses equally.
Question:
The new profit-sharing ratio is

Option 1: 4:1:1

Option 2: 8:2:2

Option 3: 1:1:1

Option 4: None of the above


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: 1:1:1


Solution : Answer = 1:1:1

Old Ratio of Vimal and Kamal $\quad=\frac{4}{5}: \frac{1}{5}$
New Ratio of Vimal, Kamal and Amal $=\frac{1}{3}: \frac{1}{3}: \frac{1}{3}$

Sacrifice or Gain:
Vimal: $\frac{4}{5}-\frac{1}{3}=\frac{12-5}{15}=\frac{7}{15}$ (Sacrifice)
Kamal : $\frac{1}{5}-\frac{1}{3} \quad=\frac{3-5}{15}=\frac{2}{15}$ (Gain)
Amal : $\frac{1}{3}$ or $\frac{5}{15}$ (Gain)

Only Vimal sacrifices his share to the benefit of Kamal and Amal. Consequently, not only the goodwill brought in by Amal will be credited to Vimal, but Kamal must also give $\frac{2}{15}$ th share of goodwill to Vimal. The total value of the Firm's goodwill based on Amal's share is Rs.1,50,000 $\times \frac{3}{1}$ or Rs.4,50,000. Hence, the amount of goodwill to be contributed by Kamal will be (Rs. 4,50,000 $\times \frac{2}{15}$ ) or Rs.60,000. This will be adjusted by debiting Kamal's Capital A/c and crediting Vimal's Capital A/c.
Hence, the correct option is 3.

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