From the following particulars, calculate new profit-sharing ratio of the partners:
(a) Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5 : 5 : 4. Mohan retired and his share was divided equally between Shiv and Hari.
(b) P, Q and R were partners sharing profits in the ratio of 5 : 4 : 1. P retires from the firm.
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New profit-sharing ratio of the partners are given below:
Explanation:
(A)
Old ratio Shiv, Mohan and Hari = 5 : 5 : 4
Mohan's Profit share =
Mohan's share is divided equally between Shiv and Hari in the ratio = 1 : 1
Calculation of Mohan's share taken by his partners
Mohan's share taken by Shiv
Mohan's share taken by Hari
New Profit Share = Old profit share + Mohan's Share taken by
Shiv's New share
Hari's New share
New Profit share Shiv and Hari
(B)
Old Ratio P, Q and R = 5 : 4:1
P's profit share
Since, no information is given as to how Q and R are acquiring P's profit after his retirement, therefore the new profit sharing ratio between Q and R is calculated simply by crossing out P's share
New Profit Ratio (Q and R) = 4 : 1
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