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# Find New Profit-sharing Ratio: A And B Are Partners. They Admit C For 1/4th Share. in Future, the Ratio Between A And B Would Be 2 : 1. - Accountancy

Sum

Find New Profit-sharing Ratio:
A and B are partners. They admit C for 1/4th share. In future, the ratio between A and B would be 2 : 1.

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#### Solution

Old Ratio = A : B
= 1 : 1
C admits for 1/4th share of profit
Let the combined share of A, B and C be = 1
Combined share of A and B = 1 - C's share
= 1 - 1/4 = 3/4

New Ratio = Combined share of A and B x 2/3

A's = 3/4 xx 2/3 = 6/12

B's = 3/4 xx 1/3 = 3/12

New Profit Sharing Ratio = A : B : C
= 6/12 : 3/12 : 1/4

= [ 6 : 3 : 3]/12

= 2 : 1 : 1

Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 5 Admission of a Partner
Exercise | Q 9.2 | Page 86
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