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. 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 Yin 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.?
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. K and Y were partners in a firm sharing profits in 3 : 2 ratio. They...
Solution:
Calculation of new profit sharing ratio:
- Before admission of Z, K and Y were sharing profits in ratio of 3:2
- Z acquired 1/3 share in the profits of the firm from K and Y in ratio of 2:3
- Therefore, Z acquired (1/3)*(2/5) = 2/15 share from K and (1/3)*(3/5) = 3/15 share from Y
- Now, the new profit sharing ratio of K, Y and Z will be:
K's share = (3/5) - (2/15) = 7/15
Y's share = (2/5) - (3/15) = 7/15
Z's share = 1/3
Journal entries:
- When Z brings in capital and premium:
Z's Capital A/c Dr. 1,10,000
To Bank A/c 1,10,000
(Being capital and premium brought in by Z)
- When Z is admitted as new partner and his share is acquired from K and Y:
Z's Capital A/c Dr. 1,10,000
To K's Capital A/c 44,000
To Y's Capital A/c 66,000
(Being Z's share acquired from K and Y)
- Adjustment of old partners' capital accounts:
K's Capital A/c Dr. 8,800
To Y's Capital A/c 8,800
(Being adjustment of capital accounts due to change in profit sharing ratio)
New profit sharing ratio: K:Y:Z = 7:7:3
Calculation of new profit sharing ratio:
- Before admission of Z, K and Y were sharing profits in ratio of 3:2
- Z acquired 1/3 share in the profits of the firm from K and Y in ratio of 2:3
- Therefore, Z acquired (1/3)*(2/5) = 2/15 share from K and (1/3)*(3/5) = 3/15 share from Y
- Now, the new profit sharing ratio of K, Y and Z will be:
K's share = (3/5) - (2/15) = 7/15
Y's share = (2/5) - (3/15) = 7/15
Z's share = 1/3
Journal entries:
- When Z brings in capital and premium:
Z's Capital A/c Dr. 1,10,000
To Bank A/c 1,10,000
(Being capital and premium brought in by Z)
- When Z is admitted as new partner and his share is acquired from K and Y:
Z's Capital A/c Dr. 1,10,000
To K's Capital A/c 44,000
To Y's Capital A/c 66,000
(Being Z's share acquired from K and Y)
- Adjustment of old partners' capital accounts:
K's Capital A/c Dr. 8,800
To Y's Capital A/c 8,800
(Being adjustment of capital accounts due to change in profit sharing ratio)
New profit sharing ratio: K:Y:Z = 7:7:3
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. 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 Yin 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.?
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. 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 Yin 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.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about . 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 Yin 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.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . 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 Yin 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.?.
. 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 Yin 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.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about . 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 Yin 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.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . 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 Yin 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.?.
Solutions for . 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 Yin 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.? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of . 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 Yin 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.? defined & explained in the simplest way possible. Besides giving the explanation of
. 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 Yin 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.?, a detailed solution for . 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 Yin 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.? has been provided alongside types of . 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 Yin 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.? theory, EduRev gives you an
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