Question

a,b and c are partners in a firm sharin profit and loss in the ratio of 5;4:1 b retire from the firm a and c acquire b profit in the ratio 1:3 clculate gaining ratio and new ratio

Answer 1

Explanation:

From the following particular’s prepare Trading

and profit and Loss Account for the year ended

31.12.2004 and a Balance sheet as on that data.

Opening Stock 8,200 Sales 83,000

Land and

Building

13,700 Creditors 6,100

Debtors 9,300 Discount received 200

Bills Receivable 1,500 Purchase return 100

Sales return 600 Capital 29,600

Furniture 7,400 Bank overdraft 5,000

Insurance 600

Travelling

expenses

5,300

Salaries 16,900

Wages 12,600

Purchases 33,600

Carriage outward 600

Plant 10,000

Cash 3,700

1,24,000 1,24,000

Adjustments:

(a) Closing stock was valued at 7,000

(b) Provide 10% Depreciation on plant

(c) Insurance was prepaid for quarter

(d) An amount of 3,000 was due to workers

Answer 2

Answer:

New Ratio =

• a : c = 3 : 2

Gaining Ratio =

• a : c = 1 : 3

Explanation:

Solution :

Old Ratio =

a : b : c = 5 : 4 : 1

$a \: = \dfrac{5}{10}$

$b \: = \: \dfrac{4}{10}$

$c \: = \: \dfrac{1}{10}$

b retire from the firm a and c acquire b profit in the ratio 1 : 3 :

Share given to a from b's share =

$\longrightarrow \: \dfrac{4}{10} \times \dfrac{1}{4} = \dfrac{4}{40}$

Share given to c from b's share =

$\longrightarrow \: \dfrac{4}{10} \times \dfrac{3}{4} = \dfrac{12}{40}$

New share of a =

$\longrightarrow \: \dfrac{5}{10} + \dfrac{4}{40}$

$\longrightarrow \: \dfrac{24}{40}$

New share of c =

$\longrightarrow \: \dfrac{1}{10} + \: \dfrac{12}{40}$

$\longrightarrow \: \dfrac{16}{40}$

New Ratio =

• a : c =

• $\dfrac{24}{40} : \dfrac{16}{40}$

New Ratio =

• 24 : 16
• 3 : 2

★ Gaining Ratio :

Gaining Ratio = New Ratio - Old Ratio

• a =

$\longrightarrow \: \dfrac{24}{40} - \dfrac{5}{10}$

$\longrightarrow \: \dfrac{4}{40}$

• c =

$\longrightarrow \: \dfrac{16}{40} - \dfrac{1}{10}$

$\longrightarrow \: \dfrac{12}{40}$

Gain Ratio =

• a : c =
• 4 : 12

Gain Ratio = 1 : 3

∴ New Ratio =

• a : c = 3 : 2

Gaining Ratio =

• a : c = 1 : 3