Question

Sharan and Angad are partners in a firm sharing profits and losses in the ratio of 3:2. On 1st April, 2022, they admit Akhil as a partner for 1 5 ⁄ share in the profits. Akhil acquires 1 5 ⁄ of his share from Sharan and the balance from Angad. On the date of Akhil’s admission, the goodwill of the firm was valued at ₹ 90,000. Akhil contributed the following assets towards his capital and his share of goodwill. Particulars (₹) Cash 60,000 Debtors (less provision for doubtful debts) 20,000 Land and Building 1,00,000 Plant and Machinery 80,000 You are required to: (i) Calculate the sacrificing ratio of the partners.

Answer 1

Sharan sacrifices 9/10 and Angad sacrifices 6/10 of their share, resulting in a sacrificing ratio of 3:2.

Step-by-step explanation:

To calculate the sacrificing ratio, we need to determine the amount of goodwill sacrificed by Sharan and Angad in favor of Akhil.

Akhil acquired 1 5⁄10 of his share from Sharan and the balance from Angad.

Since the total share of Akhil is 1 5⁄10, Sharan sacrificed 3⁄10 of his share (3/5 × 1 5⁄10) and Angad sacrificed 2⁄10 of his share (2/5 × 1 5⁄10).

Let's calculate the amounts:

Sharan's sacrifice = 3/5 × 1 5⁄10

= 9/10

Angad's sacrifice = 2/5 × 1 5⁄10

= 6/10

Therefore, the sacrificing ratio of the partners is 9:6 or 3:2.