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Question 04 Chapter 6 of +2-Part-1
4. (NPS) L , M and N have been sharing profits and losses in 5:3:2. N retires. His share is taken over by L and M in the ratio of 2:1. Calculate the new profit sharing ratio.
Calculation of new Profit Sharing ratio
| N’s share in the profit of the firm | = | 2 |
| 10 |
Gaining ratio of L & M ( given ) = 2 : 1
| L’s gain | = | 2 | x | 2 |
| 10 | 3 | |||
| = | 4 | |||
| 30 |
| M’s gain | = | 2 | x | 1 |
| 10 | 3 | |||
| = | 2 | |||
| 30 |
New Share = Old share + Gain
| L’s New Share | = | 5 | + | 4 |
| 10 | 30 | |||
| = | 19 | |||
| 30 |
| M’s New Share | = | 3 | + | 2 |
| 10 | 30 | |||
| = | 11 | |||
| 30 |
| So, New Profit sharing Ratio | = | 19 | : | 11 |
| 30 | 30 | |||
| = | 19 | : | 11 |
Comment if you have any questions.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 04 Chapter 6 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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