Question 10 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 10 Chapter 5 – Unimax Class 12 Part 1

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The solution of Question 10 Chapter 5 – Unimax Class 12 Part 1

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

10. X and Y share profits and losses in ratio of 5 : 3. Z is admitted for 3/10th share of profits, half of which were given by X and remaining share was taken by Z equally from X and Y. Calculate new profit sharing ratio.

The solution of Question 10 Chapter 5 – Unimax Class 12 Part 1

After giving Profit Share of Z
X’s new share =5/8-[1/2 X 3/10]
=5/8_3/20 =25-6/40 =19/40
Z’s remaining share after receiving half=3/10 X 1/2 =3/20
Z collected half of remaining from X and Y equally.
So X’s new share =19/40_[1/2 X 3/10]
=19/40_3/40 =4/10
Y’s new share =3/8_[1/2 X 3/20]
=3/8_3/40 =3/10
New Profit Sharing Ratio = X : Y : Z
=4/10: 3/10: 3/10
= 4 : 3 : 3 Ans.