(i) New profit sharing ratio of X, Y and Z for the year 2016-17. |
(ii) New profit sharing ratio of X, Y, Z and W on W's admission. |
Answer:
(i) Calculation of new profit sharing ratio of X, Y and Z for the year 2016-17 Z is admitted for \[\frac{1}{5}th\] share. Z Acquired Profit Share from X\[=\frac{1}{5}\times \frac{1}{2}=\frac{1}{10}\] Z Acquired Profit Share from Y \[=\frac{1}{5}\times \frac{1}{2}=\frac{1}{10}\] X's New Share = Old Share - Sacrificed Share Y's New Share = Old Share - Sacrificed Share \[=\frac{4}{7}-\frac{1}{10}=\frac{40-7}{70}=\frac{33}{70}\] New profit sharing ratio will be \[=\frac{33}{70}:\frac{23}{70}:\frac{1}{5}=\frac{33:23:14}{70}\] or 33 : 23 : 14 (ii) Calculation of new profit sharing ratio of X, Y, Z and W Old Ratio-33 : 23 : 14 W is admitted for \[\frac{1}{7}th\] share, which he acquired from X and Y in 7 : 3 ratio. W Acquired Share from X =\[\frac{1}{7}\times \frac{7}{10}=\frac{7}{70}\] W Acquired Share from Y =\[\frac{1}{7}\times \frac{3}{10}=\frac{3}{70}\] X?s New Share = \[\frac{33}{70}-\frac{7}{70}=\frac{26}{70}\] Y?s New Share =\[\frac{33}{70}-\frac{3}{70}=\frac{20}{70}\] New Ratio=\[\frac{26}{70}:\frac{20}{70}:\frac{14}{70}:\frac{1}{7}=\frac{26}{70}:\frac{20}{70}:\frac{14}{70}:\frac{10}{70}\] or 13 : 10 : 7 : 5
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