Hi Friends,
Please help me in solving below accounts porblem
A&B are partners sharing profits and losses in the ratio of 7:3. They admit C as a partner. A sacrificed 1/7th share and b sacrificed 1/3rd share of his share in favour of C. NPSR will be?
Souniya (IPCC) (110 Points)
01 April 2011Hi Friends,
Please help me in solving below accounts porblem
A&B are partners sharing profits and losses in the ratio of 7:3. They admit C as a partner. A sacrificed 1/7th share and b sacrificed 1/3rd share of his share in favour of C. NPSR will be?
Tehsinkhan Pathan
(CA CMA DISA(ICAI) B.COM)
(3956 Points)
Replied 01 April 2011
PROFIT SHARING RATION OF A:B = 7:3
SO AFTER ADMISSION OF C :=
1. 'A' SACRIFICES 1/7TH SHARE OF HIS PROFIT SO NOW A WILL GET [ 7/10 - {7/10*1/7}] 6/10
2. 'B' SACRIFICES 1/3RD SHARE OF HIS PROFIT SO NOW B WILL GET [3/10 - {3/10*1/3}] 2/10
3. NOW 'C' WILL GET THE TOTAL OF WHAT A & B SACRIFICED :[{7/10*1/7} + {3/10*1/3}] 2/10
SO NEW PROFIT SHARING RATIO A:B:C = 6:2:2
DIVYA PINCHA
(ASSISTANT MANAGER:MERCHANT BANKING)
(537 Points)
Replied 01 April 2011
THE CORRECT RATIO IS 6:2:2 i.e 3:1:1
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 01 April 2011
| Originally posted by : Tehsinkhan pathan | ||
 |
PROFIT SHARING RATION OF A:B = 7:3 SO AFTER ADMISSION OF C := 1. 'A' SACRIFICES 1/7TH SHARE OF HIS PROFIT SO NOW A WILL GET [ 7/10 - {7/10*1/7}] 6/10 2. 'B' SACRIFICES 1/3RD SHARE OF HIS PROFIT SO NOW B WILL GET [3/10 - {3/10*1/3}] 2/10 3. NOW 'C' WILL GET THE TOTAL OF WHAT A & B SACRIFICED :[{7/10*1/7} + {3/10*1/3}] 2/10 SO NEW PROFIT SHARING RATIO A:B:C = 6:2:2 |
 |
Mayank Lohana
(Owner)
(33 Points)
Replied 01 April 2011
Agree with all bt this The easiest way to calculate new PSR in casr of admission/retirement/death:
LET us assume PROFIT=100
SO distribtion of profit before admission of C would b A =70 nd B=30
and after admission of C, A will get 70-10(1/7th)=60, B 30-10(1/3)=20, C=20.
u can apply this logic in each case.
Souniya
(IPCC)
(110 Points)
Replied 02 April 2011
Amit,Rohith & Sumit are partners sharing sharing profit & losses in the ratio of 5:4:3. Sumit retries and if Amit & Rohit shares profit of Sumit in 4:3, the NPSR will be?
Ashish Jain
(.Net Developer)
(641 Points)
Replied 02 April 2011
new ratio of A = 7/10-7/10*1/7 = 7/10-1/10 = 6/10
// // // B = 3/10-3/10*1/3 = 3/10-1/10 = 2/10
// // C = 7/10*1/7+3/10*1/3 = 1/10+1/10 = 2/10
now new ratio A:B:C = 6:2:2 = 3:1:1
sacrificed ratio A:B = 1:1
Mayank Lohana
(Owner)
(33 Points)
Replied 05 April 2011
Souniya , first assume profit =84( i wl expalin the logic of assumpion if u r interested)
A R S
distribution of profit of 84 before retirement 35 28 21
distribution of profit of 84 after retirement 35 28
Share of sumit share of 21 TO A & R 12 9
total 47 37
so new psr 47:37
Ritesh Jain
(CA, CS in Job)
(675 Points)
Replied 05 April 2011
A R S
PSR before retirement 5/12=.416 4/12=.334 3/12=.250
PSR after retirement .416 .334
Add: Share of S to rest A & B .250*(4/7)=.1428 .250*(3/7)=.1071
NPSR A= .559 B= .441
M. N. JHA
(CA)
(8316 Points)
Replied 06 April 2011
| Originally posted by : Tehsinkhan pathan | ||
|
|
PROFIT SHARING RATION OF A:B = 7:3 SO AFTER ADMISSION OF C := 1. 'A' SACRIFICES 1/7TH SHARE OF HIS PROFIT SO NOW A WILL GET [ 7/10 - {7/10*1/7}] 6/10 2. 'B' SACRIFICES 1/3RD SHARE OF HIS PROFIT SO NOW B WILL GET [3/10 - {3/10*1/3}] 2/10 3. NOW 'C' WILL GET THE TOTAL OF WHAT A & B SACRIFICED :[{7/10*1/7} + {3/10*1/3}] 2/10 SO NEW PROFIT SHARING RATIO A:B:C = 6:2:2 |
|
vignesh
(B-com CS CA-Final CFA-level 1 candidate)
(1053 Points)
Replied 12 April 2011
A:7/10*1/7=1/10
(-)1/10
new psr=6/10
B:3/10*1/3=1/10
(-)1/10
new psr=2/10
c:1/10+1/10=2/10
new psr:- 6:2:2
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