A,B and C are partners with profits sharing ratio 4:3:2 . B retires and Goodwill10800 shown in the books of account. If A & C shares profits of B in 5:3 , what is the new profit sharing ratio..
a) 13:11 b) 17:11 c) 31:11 d) 14:21
Plz show the working too...
this is simple :
it is nothing but new ratio -old ratio
5/8-4/9 =13/72
3/8-2/9=11/72...
good will to be paid to him in the following
a a/c dr 10800*13/24 5850
c a/c dr 10800*11/244950
to b a/c 10800
I think the ratio wich is given i.e 5:3 is the gain ratio and therefore its not the new profit sharing ratio...
Hi Anand, the guestion has some typing errors ( in institutes module). the correct question is as under
A,B and C are partners with PSR of 4:3:2. B retires and Goodwill is valued at 10,800. If A and C share future profits in 5:3, find the gain ratio.
here the new PSR is slready given in the question, hence u need to calculate Gain ratio as "new PSR - Old PSR". In case u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
I got it now.... Thanks Mam..
CAclubindia
