Question 11 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 11 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 11 Chapter 5 – Unimax Class 12 Part 1

Free Accounting book Solution - Class 11 and Class 12

11. A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20 respectively. E joins the firm for 20% share. A, B, C and D would share profits in future among themselves as 3/10 : 4/10 : 2/10 : 1/10. Calculate the new profit sharing ratio after E’s admission.

The solution of Question 11 Chapter 5 – Unimax Class 12 Part 1

Let Total profit = 1
E’s Share =20%/100% =5/6
Remaining Profit = 1 -1/5 =5-1/5 =4/5
A’s new share =3/10 X 4/5 =6/25
B’s new share =4/10 X 4/5 =8/25
C’s new share =2/10 X 4/5 =4/25
D’s new share =1/10 X 4/5 =2/25
E’s share =1/5
New Profit Sharing Ratio = A : B : C : D : E
              =6/25: 8/25: 4/25: 2/25: 1/5
              = 6 : 8 : 4 : 2 : 5 Ans.

 

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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

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Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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