Question

17. Nimit is admitted into
partnership for 1/4th share.
Capitals are to be
proportionate to profit-sharing
ratio. If total capital of the firm
is 3,4,50,000 Nimit will bring?​

Answer 1

Step-by-step explanation:

17. Nimit is admitted into

partnership for 1/4th share.

Capitals are to be

proportionate to profit-sharing

ratio. If total capital of the firm

is 3,4,50,000 Nimit will bring?

ANSWER

Old share (A and B) = 4 : 1

C is admitted for 1/4 Share

A sacrifices in favour of C = 1/4

New ratio = Old ratio - Sacrificing ratio

A's new ratio = (4/5) - (1/4) = 11/20

B's new share = (1/5) - 0 = 1/5 or 4/20

C's share = 1/4 or 5/20

Therefore, new profit sharing ratio of A, B and C = 11 : 4 : 5