Salim and Sultan are partners sharing profit and loss in the ratio of 5 and 3. Partner Shihab wasadmitted in to a firm, which he acquires 3/8th share from partner Salim and 2/8th share fromPartner Sultan. So, the new profit sharing ratio will be:O a. 30 : 12: 21O b. 25 : 18 : 21O c. 25 : 12: 16O d. 21:16: 25

When a new partner is admitted the old partners need to sacrifice some amount their profit share to…

Answered: = new profit sharing ratio

Business

Accounting

= new profit sharing ratio

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
Salim and Sultan are partners sharing profit and loss in the ratio of 5 and 3. Partner Shihab was admitted in to a firm, which he acquires 3/8th share from partner Salim and 2/8th share from Partner Sultan. So, the new profit sharing ratio will be: a. 25 : 18 : 21 b. 30 : 12 : 21 c. 21 : 16 : 25 d. 25 : 12 : 16 PLZ FAST
The firm also has two alternatives to find out the new ratio and sacrificing ratio of the partners areIf A and B are the partners sharing profits and losses in the ratio of 5:3, admitting C for 1/5th shareof future profits in which he acquires 3/16th from A and 1/16th from B and,If A and B are the partners and sharing profits and losses in the ratio of 4:1, admitting C as a newpartner in which he acquires 2/5th of A ’s share and 1/5 of B’s share.Calculate new ratio and sacrificing ratio of the partners and suggest which alternative is good forthe new partner? Comment it.
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