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Get complete step-by-step solutions for Unimax Class 12 Part 1 - 2021 - Chapter No. 6 - Partnership Account - IV (Retirement and Death of the partner) - Unimax. Study double-entry system details, practice timed problems, and verify answers directly.
Question 1 Chapter 6 - Unimax Class 12 Part 1 - 2021
1. A, B and C are partners sharing profit and losses in 7 : 5 : 3. Calculate new profit sharing ratio and gaining ratio if B retires.
Calculation of new profit sharing ratio :
Old profit sharing ratio of A, B and C = 7 : 5 : 3
If B retires, new profit sharing rate of A and C = 7 : 3
Note. If nothing else has been mentioned in the question, after the retirement of B, A and C will share future profits between themselves in the same ratio.
Calculation of Gaining Ratio
| New Share | Old Share | Difference | ||||||||
| A | 7 | 7 | 7 | - | 7 | = | 7 | (Gain) | ||
| 10 | 15 | 10 | 15 | 30 | ||||||
| C | 3 | 3 | 3 | - | 3 | = | 3 | (Gain) | ||
| 10 | 15 | 10 | 15 | 30 | ||||||
https://tutorstips.com/retirement-of-a-partner-explained-with-illustration/
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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.