 Hi and how are you all today? I am Priyanka and this question says, A and B are partners sharing profit and loss within the ratio 5 is to 3. C pays Rs 96,000 as premium for the goodwill of the business and is admitted for one-fifth share. Show how this amount will be shared by A and B, assuming that the share of C is contributed by A and B in their profit-sharing ratio. Find also the new profit-sharing ratio. Now here in this question we are given that A and B were two partners sharing profit and loss in 5 is to 3. Now Rs 96,000 has been given by C as premium for the goodwill and he has the one-fifth share of the business now. First of all we need to tell how this Rs 96,000 will be shared among A and B and then we need to find the new profit-sharing ratio as A and B are giving C's share in their profit-sharing ratio. First of all, the first step is to calculate the old profit-sharing ratio that is between A and B and that is given to us as 5 is to 3. Now step 2 will be calculating C's share it is directly given to us as 1 by 5. Now the third step will be to calculate how much is sacrificed by A. So we need to calculate A's sacrificed that is equal to one-fifth of the share has been given to C and they are giving it in their profit-sharing ratio that is 5 upon 8. So this comes out to be 1 by 8 or it can be written as 5 by 40 if it is not getting simplified. Similarly we will be calculating B's sacrifice that will be one-fifth has been given to C out of which 3 by 8 is given by B. So it will be equal to 3 by 40 hence the sacrificing ratio will be 5 by 40 is to 3 by 40 or it is 5 is to 3. This is the sacrificing ratio. Now A's new share in the profit will be that will be our fourth part is new profit-sharing ratio will be equal to all was 5 by 8 and he has sacrificed 5 by 40. So the answer will be taking the L sim we have 40 it is 25 minus 5 that is 20 by 40 that is equal to 1 by 2. Similarly we will be calculating B's new share or it will be B's new profit share and similarly here it will be A's new profit share that is equal to 3 by 8 was the old one minus the sacrificed ratio taking the L sim and here we have it as 18 minus 3 which gives us 15 not 18 it is 15 minus 3 that gives us 12 by 40 and we know that C's share is equal to 1 by 5. Therefore new profit-sharing ratio among A, B and C are 1 by 2 is to 12 by 40 is to 1 by 5 that is 5 is to 3 is to 2 and lastly our fifth step is to distribute the good will. The good will is equal to rupees 96000. So A's share will be equal to rupees 96000 multiplied by 5 by 8 that is equal to rupees 60000 and lastly B's share will be equal to rupees 96000 into A's share that is 3 by 8 that comes out to be rupees 36000. So finally our answer is A's share is rupees 60000 and B's share is equal to rupees 36000 whereas new profit-sharing ratio is 5 is to 3 is to 2 and this is our required answer to the question. Take care, I hope you enjoyed, bye for now.