A. B and C are partners in a firm sharing profits and losses as 7:5:3 respectively. B retires and his share is taken by A and C in the ratio of 3:2 Immediately, D is admitted for 1 3 rd share of profit, 1 4th of which was given by A and the remaining share was taken equally from A and C. Calculate new profit-sharing ratio after D’s admission.

A. B and C are partners in a firm sharing profits and losses as 7:5:3 respectively. B retires and his share is taken by A and C in the ratio of 3:2 Immediately, D is admitted for 1 3 rd share of profit, 1 4th of which was given by A and the remaining share was taken equally from A and C. Calculate new profit-sharing ratio after D’s admission.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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