Anand Teertha.G (CA) (60 Points)
30 May 2011A,B and C are partners with profits sharing ratio 4:3:2 . B retires and Goodwill10800 shown in the books of account. If A & C shares profits of B in 5:3 , what is the new profit sharing ratio..
a) 13:11 b) 17:11 c) 31:11 d) 14:21
Plz show the working too...
Balram Choudhary
(Sr. Accountant)
(112 Points)
Replied 31 May 2011
Dear Anand in my view ,this will be the working note:
A:B:C =4:3:2, A:C =5:3 (B 's shares in this ratio).4/9,3/9,2/9
Therefore,Share taken by A & C(5/8 ,3/8 )
A= 3/9 * 5/8
=15/72 or 5/24
B=3/9 * 3/8
=9/72 or 3/24
Thus total share of A and C
A = 4/9+5/24
=141/216
B = 2/9+3/24
=75/216
A:B =141 : 75
=47:25
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