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Partnership a/c

Foundation / CPT 629 views 4 replies

A,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...

Replies (4)

this is simple :

it is nothing but new ratio -old ratio

5/8-4/9 =13/72

3/8-2/9=11/72...

good will to be paid to  him in the following

a a/c dr      10800*13/24 5850

 

c a/c dr 10800*11/244950

      to b a/c  10800

I think the ratio wich is given i.e 5:3 is the gain ratio and therefore its not the new profit sharing ratio...

Hi Anand, the guestion has some typing errors ( in institutes module). the correct question is as under 

A,B and C are partners with PSR of 4:3:2. B retires and Goodwill is valued at 10,800. If A and C share future profits in 5:3, find the gain ratio.

here the new PSR is slready given in the question, hence u need to calculate Gain ratio as "new PSR - Old PSR". In case u have any further doubt, revert back to me.

Regards, CA Shakuntala Chhangani

I got it now.... Thanks Mam..


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