9. Emmie and Florence are partners sharing profits and losses in the ratio of 4:1. Gen is admitted as a partner for which he pays 10,000 as premium for goodwill and in future Emmie, Florence and Glen decided to share profit and losses in the ratio of 2:1:1 respectively.
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Explanation:
Emmie and Florence are partners sharing profit and losses in the ratio of 4:1. glen is admitted
Explanation:
Old share ( Emmie and Florence ) = 4 : 1
Glen is admitted for 1/4 Share
Emmie sacrifices in favour of Glen= 1/4
New ratio = Old ratio - Sacrificing ratio
Emmie's new ratio = (4/5) - (1/4) = 11/20
Florence's new share = (1/5) - 0 = 1/5 or 4/20
Glen's share = 1/4 or 5/20
∴, new profit sharing ratio of Emmie, Florence and Glen = 11 : 4 : 5
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