Question 9 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 9 Chapter 5 – Unimax Class 12 Part 1

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The solution of Question 9 Chapter 5 – Unimax Class 12 Part 1

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

9. X and Y are partners sharing profits and losses in the ratio of 3 : 2. Z is admitted for 1/4th share. Thereafter W enters for 20% share. Compute the profit sharing ratio of X, Y, Z and W after W’s admission.

The solution of Question 9 Chapter 5 – Unimax Class 12 Part 1

Let total profit = 1
Z’s Share =1/6
Remaining Profit = 1 -1/4 =4-1/4 =3/4
X’s new share =3/4 X 3/5 =9/20
Y’s new share =3/4 X 2/5 =6/20
New ratio = x : y : z
=9/20: 6/20: 1/4
= 9 : 6 : 5 Ans.

After W’s admission
Let Total Profit = 1
W’s Share =20%/100% =1/5
Remaining Profit = 1 -1/5 =5-1/5 =4/5
X’s new share =4/5 X 9/20 =9/25
Y’s new share =4/5 X 6/20 =6/25
Z’s new share =4/5 X 1/4 =1/5
W’s share =1/5
New Profit Sharing Ratio = X : Y : Z : W =9/25: 6/25: 1/5: 1/5
= 9 : 6 : 5 : 5 Ans.