vimal and kamal are partners sharing profits in the ratio 4:1 they admit amal as a new partner who brings 15000 as his share of goodwill. amal is entitled to 1/3rd share in profits as between themselves, Vimal and kamal agree to share future profits and losses equally. you are required to
a) calculate the new profit sharing ratio
b) record journal entries showing the appropriation of premium
Answers
Answered by
5
a) calculate the new profit sharing ratio
Given
Vimal and Kamal profit sharing Ratio =4:1
Amal is admitted with 15000 as goodwill and 1/3rd share in profits
To find
New profit sharing ratio
Explanation
Remaining share =1-(1/3)
=2/3
Vimal new share= (2/3)×(1/2)
=1/3
Kamal new share =(2/3)×(1/2)
=1/3
New profit sharing ratio= 1:1:1
Similar questions