Question 1
X, Y, and Z are associates sharing profits and losses in the ratio 3:2: 1. Calculate the new ratios when (i) X retires (ii) Y retires (iii) Z retires
Solution: The new ratio of the left partners will be calculated by striking out the share of the retiring partners. Therefore,
(i) When X retires, the new ratio between Y and Z is 2:1
(ii) When Y retires, the new ratio between X and Z is 3:1
(III) When Z retires, the new ratio between X and Y is 3:2
Question 2
A, B, and C are associates in a company sharing profits in the ratio 5:4:3. B retired and his share was distributed evenly between A and C. Determine the new profit-sharing ratio of A and C.
Solution: B’s share will be divided between A and C in the ratio of 1:1.(A, will, gain, frac{1}{2}: of, frac{4}{12}=, frac{2}{12})(Hence,, A’s, new, share, =, frac{5}{12}, +, frac{2}{12}, =, frac{7}{12})(C, will, gain, frac{1}{2}, of, frac{4}{12}, =, frac{2}{12})(Hence,, C’s, new, share, =, frac{3}{12}, +, frac{2}{12}, =, frac{5}{12})(New, Ratio, =, Afrac{7}{12}, :, Cfrac{5}{12}, or, 7:5)
Question 3
A, B, C, and D are associates sharing profits in the ratio of 3:4:3:2. On the retirement of C, the goodwill was valued at ₹6,00,000. A, B and D decided to show future profits equally. Pass the necessary journal entry for the retirement of goodwill.
Solution: Calculation of Gaining Ratio:(Gaining, Ratio, of, A, =, frac{1}{3}, -, frac{3}{12}, =, frac{4-3}{12}, =, frac{1}{12})(Gaining, Ratio, of, B, =, frac{1}{3}, -, frac{4}{12}, =, frac{4-4}{12}, =, 0)(Gaining, Ratio, of, D, =, frac{1}{3}, -, frac{2}{12}, =, frac{4-2}{12}, =, frac{2}{12})
| Date | Particulars | L.F | Dr. (₹) | Cr. (₹) | |
| A’s Capita lA/cD’s Capital A/c | Dr.Dr. | 50,0001,00,000 | |||
| To C’s Capital A/c(C’s share of goodwill debited to the account of A and D in the gaining ratio 1:2) | 1,50,000 |
Question 4
A, B and C were partners sharing profits in the ration of 5:4:3. C retired and his share was taken up by A and B in the ratio of 3:2. Find out the new ratio.
Solution:
C’s share will be divided between A and B in the ratio of 3:2(A, will, gain, frac{3}{5}, of, frac{3}{12}, =, frac{9}{60})(Hence,, A’s, new, share, =, frac{5}{12}, +, frac{9}{60}, =, frac{34}{60})(B, will, gain, frac{2}{5}, of, frac{3}{12}, =, frac{6}{60})(Hence,, B’s, new, share, =, frac{4}{12}, +, frac{6}{60}, =, frac{26}{60})(New, Ratio, =, Afrac{34}{60},:, B, frac{26}{60}, or, 17:13)