X and Y are partners sharing profits in the ratio of 2 : 1. They admit Z into the partnership for 1/4th share in profits
X and Y are partners sharing profits in the ratio of 2 : 1. They admit Z into the partnership for 1/4th share in profits for which he brings ₹ 20,000 as his share of capital. Hence, the adjusted capitals of X and Y will be
a) ₹ 40,000 and ₹ 20,000 respectively
b) ₹ 32,000 and ₹ 16,000 respectively
c) ₹ 60,000 and ₹ 30,000 respectively
d) ₹ 20,000 and ₹ 40,000 respectively
Anurag Pathak Changed status to publish April 4, 2024
Ans – a)
Solution:-
Calculate of the new profit sharing ratio
Old Ratio = 2 : 1
Z admitted for 1/4th share
Remaining share = 1 – 1/4 = 3/4
X’s new share = 3/4 × 2/3 = 6/12
Y’s new share = 3/4 × 1/3 = ₹ 3/12
New profit sharing ratio after making base equal
6/12 : 3/12 : 1/4 × 3/3 = 6 : 3 : 3
2 : 1 : 1
Total Capital of the firm = ₹ 20,000 × 4 = ₹ 80,000
X’s capital in the new firm = 80,000 × 2/4 = ₹ 40,000
Y’s capital in the new firm = 80,000 × 1/4 = ₹ 20,000
Anurag Pathak Changed status to publish June 1, 2023
