Scribd Logo
Upload

Welcome to Scribd!

  • 6 views

    2nd GDB

    Uploaded by

    smazharali121
    Mr. A and Mr. B were partners sharing profits in a 2:3 ratio. Mr. C was admitted as a new partner with a 1/5 share of future profits. To calculate the new profit sharing ratio, the sacrifice ratio of Mr. A giving up 0.4 of his share and Mr. B giving up 0.6 of his share was first determined. Then the new profit sharing ratio of Mr. A receiving 1.6, Mr. B receiving 2.4, and Mr. C receiving 1.0 was calculated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    2nd GDB

    Uploaded by

    smazharali121
    6 views1 page
    Mr. A and Mr. B were partners sharing profits in a 2:3 ratio. Mr. C was admitted as a new partner with a 1/5 share of future profits. To calculate the new profit sharing ratio, the sacrifice ratio of Mr. A giving up 0.4 of his share and Mr. B giving up 0.6 of his share was first determined. Then the new profit sharing ratio of Mr. A receiving 1.6, Mr. B receiving 2.4, and Mr. C receiving 1.0 was calculated.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Mr. A and Mr. B were partners sharing profits in a 2:3 ratio. Mr. C was admitted as a new partner with a 1/5 share of future profits. To calculate the new profit sharing ratio, the sacrifice ratio of Mr. A giving up 0.4 of his share and Mr. B giving up 0.6 of his share was first determined. Then the new profit sharing ratio of Mr. A receiving 1.6, Mr. B receiving 2.4, and Mr. C receiving 1.0 was calculated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    6 views1 page

    2nd GDB

    Uploaded by

    smazharali121
    Mr. A and Mr. B were partners sharing profits in a 2:3 ratio. Mr. C was admitted as a new partner with a 1/5 share of future profits. To calculate the new profit sharing ratio, the sacrifice ratio of Mr. A giving up 0.4 of his share and Mr. B giving up 0.6 of his share was first determined. Then the new profit sharing ratio of Mr. A receiving 1.6, Mr. B receiving 2.4, and Mr. C receiving 1.0 was calculated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    of 1

    Q: Mr. A and Mr. B are partners sharing the profits in the ratio of 2 & 3.

    Mr. C is admitted into the partnership with 1/5th share of future profits.
    Calculate the new profit sharing ratio and the sacrifice ratio.
    Ans: Now first of all we calculate the sacrifice ratio after that we calculate the
    sharing ratio.
    Solution
    Sacrifice Ratio
    Mr. A: Mr. B
    2: 3
    = 2* 1/5: 3* 1/5
    = 0.4: 0.6
    Profit sharing ratio
    A : B : C
    = 2-0.4:3-0.6:0.4 + 0.6
    =1.6: 2.4 :1.0

    You might also like