sachin and rahul were partners in a firm sharing profits and losses in the ratio of 3:2 . they admit dhoni for 1/6th share in profit and guaranteed that his share of profits will not be less than ₹25000 . total profits of the firm is 90,000 . Calculate share of profits for each partner when the guarantee is given by a firm . Prepare profit and loss appropriation account.
Answers
The new Profit Ratio is 3: 2: 1.
GIVEN: Profit sharing ratios of two partners.
Admission of the third partner.
TO FIND: New profit Sharing Ratio
SOLUTION :
Old ratio = 3:2
= 3/5 * 2/5
According to the question,
Dhoni admits for 1/6th share.
So, Let the net profit of the firm be 1.
Share of Sachin and Rahul = 1 - Dhoni's share
= 1 - 1/6
= 5/6
As we know,
New Share = Old share * Remaining Part
Sachin's New Share = 3/5 * 5/6 = 15/30
Rahul's New share = 2/5 * 5/6 = 10/30
Now,
New Profit Sharing Ratio = 15/30: 10/30 : 1/6
= 15 : 10 : 5
30
= 15 : 10 : 5
= 3 : 2 : 1
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