Question

Determine new profit-sharing ratio:

(i) K, L and M are partners sharing profits and losses in the ratio of 3: 2:1. They admit N for 1/6th share. M would retain his original share.

(ii) A, B and C are partners sharing profits in the ratio of 3:2:5. They admit D and give him 1/4th share. Share is contributed by them in the ratio of 1:1: 3.

(iii) A and B are partners sharing profits in the ratio of 5:4. They admit C for 1/9th share, which he acquires from A. ​

Answer 1

Explanation:

A's old share= 2/5

B's old share= 2/5

C's old share= 1/5

D is admitted for 1/6th share. C will retain his original share.

Hence, remaining share= 1- [1/6] - [1/5]

= 19/30

This remaining share will be shared by A and B in their old ratio, i.e, 2:2

A's new share= 2/4 * 19/30

= 38/120

B's new share= 2/4 * 19/30

= 38/120

New Profit sharing ratio= 38:38:24:20

= 19:19:12:10

Sacrificing ratio= old ratio- new ratio

A's sacrifice= 2/5- 19/60

= 5/60

B's sacrifice= 2/5- 19/60

= 5/60

Sacrificing ratio= 5:5= 1:1

[Note: since nothing is mentioned, we assume that only A and B have sacrificed since C retains his old share

same questions answered but the value are different

Answer 2

• They admit C into partnership for 1/4th share in profits which he takes 1/6th from A and 1/12th from B. C brings RS 18,000 as goodwill out of his share of RS 30,000. Pass necessary Journal entries to record this arrangement.