MGT101 - Financial Accounting GDB no.2

by Nilofer Bugti Fri May 27, 2011 5:33 pm

This is to inform that Graded Discussion Board (GDB)
Has been opened according to the following schedule
Opening Date 27 May 2011

Ending Date 27 May 2011
Question
Mr. A and Mr. B are partners sharing the profits in the ratio of 2 & 3. Mr. C is admitted into the partnership with 1/5th share of future profits. Calculate the new profit sharing ratio and the sacrifice ratio.

by Nilofer Bugti Fri May 27, 2011 5:35 pm

Solution:-
Sacrifice Ratio:-
A:B:C
= 2-0.4:3-0.6:0.4 + 0.6
= 1.6 : 2.4 : 1.0
Profit sharing ratio:-
Mr. A: Mr. B
2: 3
= 2* 1/5 : 3* 1/5
= 0.4 : 0.6

MGT101 - Financial Accounting GDB no.2

MGT101 - Financial Accounting GDB no.2

Re: MGT101 - Financial Accounting GDB no.2