Calculation of remuneration & profits to partners
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 July 2014
New partners are admitted to a Partnership Firm on 1.11.2013. How to distribute remuneration and profits between the old and new partners?
CA Parul Saxena
(Expert)
22 July 2014
calculate the new ration according to capital and time.Say Mr.A and Mr.B starts a business on 01.04.13 with a capital of Rs.100000 and Rs.80000 respectively.Mr.C came on 01.11.13 with a capital of Rs.40000 then the ration will be:-
A=100000*12=1200000
B=80000*12=960000
C=40000*5=200000
New ration=1200000:960000:200000
=120:96:20
=30:24:5
New ratio=30:24:5
Say Profit is Rs.590000
A's share=590000*30/59=300000
B's Share=590000*24/59=240000
C's Share=590000*5/59=50000
A=100000*12=1200000
B=80000*12=960000
C=40000*5=200000
New ration=1200000:960000:200000
=120:96:20
=30:24:5
New ratio=30:24:5
Say Profit is Rs.590000
A's share=590000*30/59=300000
B's Share=590000*24/59=240000
C's Share=590000*5/59=50000
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