Question

X and Y are partners sharing profits and losses in the ratio of 3 : 2. They
admit Z into partnership, Z paying a premium of 1,00,000 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:

Solution

Sicne, Z acquires 1/4th of his share from X, it means he acquires 3/4th (i.e., 1-1/4th) of his share from Y.

If 3/4th share of Z 3/16 (Received from Y)

:. Z's share =3/16×4/3=1/4

Calculation of New Share:

Share acquired by Z from X=1/4×1/4=1/16,from Y=3/16

X's New Share =3/5−1/16=(48−5)/80=43/80

Y's New Share =2/5−3/16=(32−15)/80=17/80

Z's Share =1/4or20/80

Thus, New Profit-sharing Ratio of X, Y and Z =43/80:17/80:20/80or43:17:20,

Sacrificing Ratio of X and Y =1/16:3/16or1:3.