Arif and Basheer are partners sharing profits and losses in the ratio of 7 and 5. They admit partner Rafiq into partnership for 1/6th share in profit which he acquired 1/24 from Arif and 3/24 from Basheer. So, the new profit sharing ratio will be O a. 13 :7:4 O b. 14:6:4 O c. 16:4:4 d. 4:4:12
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Step by step
Solved in 2 steps
