Question

X and y are partner in a from Sharing profit and loss in the ratio of 3:2 .they decided to admit z with 1/5 the share in profit with a guaranteed amount of 50000 .they decided that the profit sharing ratio between X and y will not change .the firm earned profit of 150000 for the year 2016_2017 . prepare profit and loss appropriation account .​

Answer 1

Answer:

X's old share= 3/5

Y's old share= 2/5

Z is admitted for 1/4th share

Sacrificing ratio is 2:1

Z acquired 2/3 * 1/4 = 2/12 from X

Z acquired 1/3 * 1/4 = 1/12 from Y

Hence,

X's new ratio= 3/5-2/12

= 26/60

Y's new ratio= 2/5-1/12

= 19/60

Z's share= 15/60

New Profit sharing ratio= 26:19:15