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P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:?
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P and s are partners sharing profits in the ratio of 3:2 .R is admitte...
Here's the solution to your question:
Here the g/w is divided in ratio 3:1 (63000:21000) the share of new partner is to be divided to get S.R. 1/5*3/4 =3/20
and
1/5*1/4 =1/20
to get the N.R.=O.R.- S.R.
i.e. A=>3/5-3/20 =9/20
B=>2/5-1/20=7/20
and
the ratio of
C=> 1/5=4/20
which comes to 9:7:4
You can learn everything about Profit and Loss through this doc
Community Answer
P and s are partners sharing profits in the ratio of 3:2 .R is admitte...
Solution:
Calculation of new profit sharing ratio:
Initially, P and S are sharing profits in the ratio of 3:2, which can be written as:
P's share = 3/5
S's share = 2/5
When R is admitted with 1/5 share, the new profit sharing ratio becomes:
P's share = 3/5 x 4/5 = 12/25
S's share = 2/5 x 4/5 = 8/25
R's share = 1/5
Therefore, the new profit sharing ratio is 12:8:5.
Calculation of goodwill:
The total amount of goodwill brought in by R is Rs.84000, which is credited to the capital accounts of P and S in the ratio of their profit sharing ratio. Therefore,
P's share of goodwill = 12/25 x Rs.84000 = Rs.40320
S's share of goodwill = 8/25 x Rs.84000 = Rs.26880
Calculation of new capital:
After the admission of R, the total capital of the firm will be equal to the sum of the old capitals and the goodwill brought in by R. Therefore,
P's new capital = P's old capital + P's share of goodwill = Rs.63000 + Rs.40320 = Rs.103320
S's new capital = S's old capital + S's share of goodwill = Rs.21000 + Rs.26880 = Rs.47880
R's capital = Rs.84000
Calculation of new profit distribution:
The new profit distribution will be based on the new profit sharing ratio. Therefore,
P's share of profit = 12/25 x Total profit
S's share of profit = 8/25 x Total profit
R's share of profit = 5/25 x Total profit
where Total profit = Total revenue - Total expenses
Note: The above calculation assumes that the capital accounts of P and S are adjusted only for the goodwill brought in by R. If there are any other adjustments to be made, the calculations may differ.
Calculation of new profit sharing ratio:
Initially, P and S are sharing profits in the ratio of 3:2, which can be written as:
P's share = 3/5
S's share = 2/5
When R is admitted with 1/5 share, the new profit sharing ratio becomes:
P's share = 3/5 x 4/5 = 12/25
S's share = 2/5 x 4/5 = 8/25
R's share = 1/5
Therefore, the new profit sharing ratio is 12:8:5.
Calculation of goodwill:
The total amount of goodwill brought in by R is Rs.84000, which is credited to the capital accounts of P and S in the ratio of their profit sharing ratio. Therefore,
P's share of goodwill = 12/25 x Rs.84000 = Rs.40320
S's share of goodwill = 8/25 x Rs.84000 = Rs.26880
Calculation of new capital:
After the admission of R, the total capital of the firm will be equal to the sum of the old capitals and the goodwill brought in by R. Therefore,
P's new capital = P's old capital + P's share of goodwill = Rs.63000 + Rs.40320 = Rs.103320
S's new capital = S's old capital + S's share of goodwill = Rs.21000 + Rs.26880 = Rs.47880
R's capital = Rs.84000
Calculation of new profit distribution:
The new profit distribution will be based on the new profit sharing ratio. Therefore,
P's share of profit = 12/25 x Total profit
S's share of profit = 8/25 x Total profit
R's share of profit = 5/25 x Total profit
where Total profit = Total revenue - Total expenses
Note: The above calculation assumes that the capital accounts of P and S are adjusted only for the goodwill brought in by R. If there are any other adjustments to be made, the calculations may differ.
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P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:?
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P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:?.
P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:?.
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P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:?, a detailed solution for P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:? has been provided alongside types of P and s are partners sharing profits in the ratio of 3:2 .R is admitted with 1/5 share and he brings in Rs.84000 as his share of goodwill which is credited due to the capital accounts of p and s respectively with rs.63000 and rs.21000, new profit sharing will be:? theory, EduRev gives you an
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