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Question
R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retire from the business and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit-sharing ratio.
Solution
Old Ratio (R, S and M) = `2 : 2 : 1`
M retires from the firm.
His profit share = `1/5`
M’s share taken by R and S in ratio of `1 : 2`
`"Share taken by R" : 1/5 xx 1/3 = 1/15`
`"Share taken by S" : 1/5 xx 2/3 = 2/15`
New Ratio = Old Ratio + Share acquired from M
`"R's New Share" : 2/5 + 1/15 = 6+1/15 = 7/15`
`"S's New Share" : 2/5 + 2/15 = 6+2/15 = 8/15`
∴ New Profit Ratio (R and S) = `7 : 8`
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|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
| Creditors |
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|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
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|
Debtors |
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|
|
| X |
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|
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|
Profit and Loss A/c | 4,000 | |
| Z |
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|
||
|
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||||
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Liabilities |
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Assets |
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||
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|
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|
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|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Sundry Creditors |
2,50,000 |
Building |
2,60,000 |
||
|
Reserve Fund |
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||
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|
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||||
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|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Creditors |
2,00,000 |
Building |
2,00,000 |
||
|
Employees' Provident Fund |
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||
|
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|
Capital A/cs: |
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Assets | Amount (₹) |
||
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|
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| Liabilities | Amount (₹) |
Assets | Amount (₹) |
||
| Sundry Creditors | 13,800 | Furniture | 16,000 | ||
| General Reserve | 23,400 | Land and Building | 56,000 | ||
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| Liabilities | ₹ | Assets | ₹ | |
| Capital A/cs: | Fixed Assets | 9,00,000 | ||
| Ram | 4,00,000 | Current Assets | 5,20,000 | |
| Mohan | 4,50,000 | |||
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| 14,20,000 | 14,20,000 | |||
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| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|
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| 9,45,000 | 9,45,000 | |||
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Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
Atul and Neera were partners in firm sharing profits in the ratio of 3: 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ₹ 2,00,000. Mitali brings her share of a goodwill premium of ₹ 20,000 in cash, which is entirely credited to Atul's Capital Account. Calculate the new profit sharing ratio.
At the time of admission of a new partner, Which adjustments are required:
P and S are partners sharing profits in the ratio of 3 : 2. R is admitted with `1/5`th share and he brings in ₹ 84,000 as his share of goodwill which is credited to the capital accounts of P and S respectively with ₹ 63,000 and ₹ 21,000. New profit sharing ratio will be:
A, B and C are partners sharing profit in the ratio of 2 : 2 : 1. C retired. The new Profit Sharing ratio between A and B will be:
A and B were partners. They shared profits as A-`1/2`, B-`1/3` and carried to reserve `1/6`. B died. The balance of reserve on the date of B's death was ₹ 30,000. B's share of a reserve will be:
A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. B retires and his share was taken up by A and C in the ratio 3 : 2. New profit sharing ratio will be ______.
A, B and C are three partners sharing profit and loss in the ratio of 3:2:1. B retires from the firm. Suppose A and C purchase the share of retiring partners equally. What is the new profit sharing ratio?
