K and Y were partners in a firm sharing profits in 3 : 2 ratio. They admitted Z as a new partner for 1/3rd share in the profits of the firm. Z acquired his share from K and Y in 2 : 3 ratio

K and Y were partners in a firm sharing profits in 3 : 2 ratio. They admitted Z as a new partner for 1/3rd share in the profits of the firm. Z acquired his share from K and Y in 2 : 3 ratio. Z brought ₹ 80,000 for his capital and ₹ 30,000 for his 1/3rd share as premium. Calculate the new profit sharing ratio of K, Y and Z and pass necessary journal entries for the above transactions in the books of the firm.

[Ans. New profit sharing ratio of K, Y and Z = 7 : 3 : 5.]