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L and M are partners in a firm sharing profits in the ratio of 5:3. They admit N and decide that the profit sharing ratio between M and N shall be the same as existing between L and M. Calculate new profit sharing ratio and the sacrificing ratio?
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L and M are partners in a firm sharing profits in the ratio of 5:3. Th...
Calculation of New Profit Sharing Ratio and Sacrificing Ratio
Given:
To Find:
Solution:
Conclusion:
Given:
- L and M are partners in a firm sharing profits in the ratio of 5:3.
- N is admitted into the partnership.
- The profit sharing ratio between M and N shall be the same as existing between L and M.
To Find:
- The new profit sharing ratio between L, M, and N.
- The sacrificing ratio of L and M.
Solution:
- Let the new profit sharing ratio between L, M, and N be x:y:z.
- Given, the profit sharing ratio between L and M is 5:3.
- Therefore, the profit sharing ratio between M and N will also be 5:3 (as given).
- Let us assume the common ratio between L, M, and N to be k.
- Therefore, we can write:
- 5k:3k = 5:3
- 5k = 15 and 3k = 9
- k = 3
- Now, the new profit sharing ratio between L, M, and N will be:
- x:y:z = 5k:3k:3k = 15:9:9
- Therefore, the new profit sharing ratio between L, M, and N is 15:9:9.
- The sacrificing ratio is the ratio in which the existing partners are sacrificing their share of profits to accommodate the new partner.
- Here, L and M are the existing partners and N is the new partner.
- Therefore, the sacrificing ratio of L and M will be:
- Sacrificing ratio of L = (Old Share - New Share)/Total Share of Sacrificing Partners
- Sacrificing ratio of L = ((5/8) - (5/12))/(5/8 + 3/8)
- Sacrificing ratio of L = (5/24)/(8/24) = 5/8
- Sacrificing ratio of M = (Old Share - New Share)/Total Share of Sacrificing Partners
- Sacrificing ratio of M = ((3/8) - (3/12))/(5/8 + 3/8)
- Sacrificing ratio of M = (3/24)/(8/24) = 3/8
- Therefore, the sacrificing ratio of L and M is 5:3.
Conclusion:
- The new profit sharing ratio between L, M, and N is 15:9:9.
Community Answer
L and M are partners in a firm sharing profits in the ratio of 5:3. Th...
As there is mentioned that M and N will be sharing profit as it is between L and M so L and M ratio is 5:3. Then M and N will share 5:3 so for 5 share Mhas 3 then for 3 share how much for N by cross multiplication it will come to 3/5*3=1.8
5:3:1.8=25:15:9 is the new ratio and sacrifice will be old ratio - new ratio
L= 5/8-25/49 =(245-200)/392=45/392
M=3/8-15/49 = (147-120)/392 = 27/392
sacrifice is 45:27=5:3
5:3:1.8=25:15:9 is the new ratio and sacrifice will be old ratio - new ratio
L= 5/8-25/49 =(245-200)/392=45/392
M=3/8-15/49 = (147-120)/392 = 27/392
sacrifice is 45:27=5:3
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L and M are partners in a firm sharing profits in the ratio of 5:3. They admit N and decide that the profit sharing ratio between M and N shall be the same as existing between L and M. Calculate new profit sharing ratio and the sacrificing ratio?
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L and M are partners in a firm sharing profits in the ratio of 5:3. They admit N and decide that the profit sharing ratio between M and N shall be the same as existing between L and M. Calculate new profit sharing ratio and the sacrificing ratio? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about L and M are partners in a firm sharing profits in the ratio of 5:3. They admit N and decide that the profit sharing ratio between M and N shall be the same as existing between L and M. Calculate new profit sharing ratio and the sacrificing ratio? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for L and M are partners in a firm sharing profits in the ratio of 5:3. They admit N and decide that the profit sharing ratio between M and N shall be the same as existing between L and M. Calculate new profit sharing ratio and the sacrificing ratio?.
L and M are partners in a firm sharing profits in the ratio of 5:3. They admit N and decide that the profit sharing ratio between M and N shall be the same as existing between L and M. Calculate new profit sharing ratio and the sacrificing ratio? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about L and M are partners in a firm sharing profits in the ratio of 5:3. They admit N and decide that the profit sharing ratio between M and N shall be the same as existing between L and M. Calculate new profit sharing ratio and the sacrificing ratio? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for L and M are partners in a firm sharing profits in the ratio of 5:3. They admit N and decide that the profit sharing ratio between M and N shall be the same as existing between L and M. Calculate new profit sharing ratio and the sacrificing ratio?.
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