T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1 Solutions Chapter No. 5 - Admission of Partner

Question 01 Chapter 5 of +2-A

1. X,Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit A into partnership and give him 1/5th share of profits. Find the new profit-sharing ratio.

The solution of Question 01 Chapter 5 of +2-A

Old Ratio of X, & Y	=	5 : 3 : 2
A is admitted for 1/5 share of profit

Let the total share of the business = 1
Remaining share of X,Y & Z after A’s Admission = Total Share - A’s Share

Remaining share	=	1	-	1
				4

=	5 - 1
		5

=	4
		5

To Calculate to New Ratio distribute the remaining share in the old ratio of old partners’
New Ratio = Combined share of X, Y and Z X Old Ratio

X’s New Ratio	=	4	X-	5
		5		10

=	20
		50

 

Y’s New Ratio	=	4	X	3
		5		10

=	12
		50

 

Z’s New Ratio	=	5	X	2
		10		10

=	8
		50

 

A’s New Ratio	=	1	X	10
		5		10

=	10
		50

 

New Profit sharing Ratio between X, Y, Z, and A	=	20 : 12 : 8 : 10
	=	10:   6 :  4 :   5