Question

Lily contributed P24,000 and Robin contributed P48,000 to form a partnership, and they agreed to share profits in the ratio of their original capital contributions. During the first year of operations, they made a profit of P16,290; Lily withdrew P5,050 and Robin P8,000. At the start of the following year, they agreed to admit Tracey into the partnership. She was to receive one-fourth interest in the capital and profits upon payments of P30,000 to Lily and Robin, whose capital accounts were to be reduced by transfers to Tracey's capital account of amounts sufficient to bring them bank to their original capital ratio. 4. How should the P30,000 paid by Tracey be divided between Lily and Robin? Lily Robin 9,835 20,175 b. 10,000 20,000 9,300 20,700 d. 15,000 15,000 a. C.

Answer 1

Total Capital = 24000+48000

=72000

In this case Lily's and Robins Old Profit Sharing Ratio is 1:2

They are geting total profit of 16290 its should divided into there old profit sharing ratio

Lily's Profit = 16290*1/3

= 5430

Robin's Profit = 16290*2/3

= 10860

The new partner is giving 30000 so that amount shoud divided into old profit sharing ratio that means 1:2

So Lilly will get = 30000*1/3 = 10000

Robin will get = 30000*2/3 = 20000

So the option B is the right answer