Question 16 Chapter 6 - Unimax Class 12 Part 1

Question 16 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 16 Chapter 6 – Unimax Class 12 Part 1: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

16. E, F, G and H are partners sharing profits in 5 : 3 : 1 : 2. Calculate the new profit sharing ratio if F and G retire from the firm.

The solution of Question 16 Chapter 6 – Unimax Class 12 Part 1: –

Old Profit Sharing Ratio = E : F : G : H
= 5 : 3 : 1 : 2
New Profit Sharing Ratio (after retirement of F and G) = E : H = 5 : 2
Note: If nothing else, has been mentioned in the question, continuing partners E and H will share future profits between themselves in the same ratio as it was before the retirement of F and G.