Question

P AND Q ARE PARTNERS SHARING PROFIT IN THE RATIO 3:2 ON APRIL 1ST 2013 THEY ADMIT MAHESH AS A NEW PARTNER FOR 3/13 SHARE IN THE PROFITS. THE NEW RATIO WILL BE 5:5:3 MAHESH CONTRIBUTED THE FOLLOWING ASSETS TOWARDS HIS CAPITAL AND FOR HIS SHARE OF GOODWILL

Answer 1

Explanation:

ANSWER

Admission of a partner leads to the reconstitution of partnership. As a result of which there is a change in the profit sharing ratio among the partners. The new partner acquires his share from the existing partners.

P and Q are the old partners sharing ratio. R is admitted as new partner and he is acquiring his share in a specified ration from the existing partners. First we will calculate the new ratio of the partners.

P= 3/5 - 1/5 = 2/5

Q= 2/5- 4/25 = 6/25

R= 1/5 + 4/25 = 9/25

so the new ratio is 10:6:9

Now we will calculate the sacrificing ratio= old ratio - new ratio

P= 3/5- 2/5= 1/5

Q=2/5-6/25 = 4/25

So, the ratio in which they are giving up the share is the sacrificing ratio.

I think you will understand