Become a Certified GST Practitioner in just 58 hrs. Register Now!

Partnership

ravichandran (Business Head) (44 Points)

22 November 2015

P and Q are partners sharing profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20000 as his capital for 1/4th share and pays Rs. 9000 for goodwill half of which is to be withdrawn by P and Q. how much cash can P and Q withdraw from the firm if any

Reply
Follow
Share

2 Replies

Ruchi (CA) (1410 Points)
Replied 22 November 2015

The new profit sharing ratio will be 2:1:1.the goodwill will be distributed in sacrificing ratio which comes out to be 2:1. Hence goodwill distributed will be 6000 and 3000. Each will draw half if it hence 3000 and 1500 by P and Q resp.