Question

A, B, C are partners sharing profit and losses in the ratio of 4:3:1: B retires and gives his share of profit to A Rs. 3,600 and C Rs. 4,500. What is the Gaining sharing ratio of A and C? *

4:5

2:1

68:48

4:1

​

Answer 1

Answer:

B retires and gives his share of profit to A Rs. 3,600 and C Rs. 4,500

So A & C divide B's share in the ratio

= 3600 : 4500

= 4 : 5

A' s share in B's profit = (3/8)×(4/9)= 12/72 = 1/6

C' s share in B's profit = (3/8)×(5/9)= 15/72 = 5/24

So the gain ratio of A & C

= ( 1/6 ) : ( 5/24)

= (4/24):(5/24)

= 4 : 5

New profit share ratio

= old ratio + Gain ratio

A's profit share ratio = (4/8)+(1/6) = (12+4)/24 = 16/24

C's profit share ratio = (1/8)+(5/24) = (3+5)/24 = 8/24

So

New profit share ratio of A & C

= (16/24) : (8/24)

= 16 : 8

= 2 : 1

Answer 2

Step-by-step explanation:

1. Calculation of gaining ratio

Old ratio (A, B and C) = 4 : 3 : 2

B retires from the firm

New artio (A and C ) = 5 : 3

Gaining ratio = New ratio - Old ratio

A's new share = (5/8) - (4/9) = (45 - 32) /72 = 13/72

C's new share = (3/8) - (2/9) = (27 - 16) / 36 = 11/72

gaining ratio = 13 : 11

2. Adjustment of goodwill

C's share of goodwill = (10800 * 3) / 9 = 3600

This share of goodwill is to be debited to remaining partners' capital account in their gaining ratio (i.e., 13 : 11 )

Journal entry for the above will be:

A's capital A/c Dr. 1950

C's capital A/c Dr. 1650

To B's capital A/c 3600

Hope it's help you