Question

X and Y are partner sharing profit and losses in the ratio of 3:2 they admit Z into partnership Z paying a premium of 100000 for 1/4 share of the profit while X and Y as between themselves sharing profits and losses equally give journal entries

Answer 1

Answer:

X's old share= 3/5

Y's old share= 2/5

Z is admitted as a partner.

X's sacrifice= 3/5 * 1/3

                    = 3/15

Y's sacrifice= 1/10

Therefore, Z's share= 3/15 + 1/10

                                  = 9/30

X's new share=  3/5- 3/15

                        = 6/15

Y's new share= 2/5- 1/10

                       = 3/10

New profit sharing ratio= 4:3:3

Sacrificing ratio= 2:1

Explanation:

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