Question 5 Chapter 5 of Class 12 Part – 1 Usha Publication

Question 5 Chapter 5 of Class 12 Part – 1 Usha Publication

5. (NPS) A and B are partners sharing profit and losses in the proportions of 3:1. they agree to admit C into partnership who is to get 1/8th share. He acquired his share as to 1/32 from A and 3/32 from B . Calculate new profit sharing ratio.

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Calculation of new Profit Sharing ratio

A’s share is	1	out of which he surrenders	1	in favor of C
	4		32

A’s New Share	=	3	-	1
		4		32
	=	24-1
		32
	=	23
		32

B’s share is	1	out of which he surrenders	3	in favor of C
	4		32

B’s New Share	=	1	-	3
		4		32
	=	8-3
		32
	=	5
		32

Z’s share	=	1
		4

New Profit sharing Ratio	=	23	:	5		4
		32		32		32
	=	23	:	5	:	4

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