Page 112 - DEBKVOL-1

5.28 Double Entry Book Keeping—CBSE XII
Illustration 20.

Bishan and Krishan are partners sharing profits and losses in the ratio of 3 : 2. They admit
Amit for 1/10th share which he acquires equally from Bishan and Krishan.

Calculate the New Profit-sharing Ratio.
Solution: Share surrendered by Bishan = 1/10 × 1/2 = 1/20

Share surrendered by Krishan = 1/10 × 1/2 = 1/20
New Share = Old share – Share surrendered
3 1 12 1- 11
Bishan’s New Share = - = =
5 20 20 20

2 1 8 1- 7
Krishan’s New Share = - = =
5 20 20 20

1 2
Amit’s Share = or
10 20
11 7 2
New Profit-sharing Ratio = : : = 11: 7 : 2.
20 20 20
Illustration 21.

X, Y and Z are partners sharing profits in the ratio of 4 : 3 : 3. They admitted A into
partnership for 1/5th share which he took from the old partners in the ratio 1 : 2 : 3. Calculate
the new profit-sharing ratio.

Solution:
1 1 1 2 1 2 3 1 3
A acquires from X = th of = ; from Y = th of = ; from Z = th of =
6 5 30 6 5 30 6 5 30

New Share = Old Share – Share Surrendered

4 1 12 1- 11
X’s New Share = - = =
10 30 30 30

3 2 92- 7
Y’s New Share = - = =
10 30 30 30
3 3 93 6
Z’s New Share = - = =
10 30 30 30

1 6
A’s Share is or
5 30
11 7 6 6
Thus, New Profit-sharing Ratio = : : : = 11: 7 : 6 : 6.
30 30 30 30