Question 3 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 3 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 3 Chapter 6 – Unimax Class 12 Part 1: –

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

3. X, Y and Z are partners sharing profits and losses in 3 : 2 : 1. Y retires and his share is taken over by X and Z in 2 : 1. You are required to calculate.

New Profit Sharing Ratio
Gaining Ratio

The solution of Question 3 Chapter 6 – Unimax Class 12 Part 1: –

Old profit sharing ratio = X : Y : Z = 3 : 2 : 1
Y retires and X and Z take over Y’s share in 2 : 1
Gaining ratio = X : Z = 2 : 1
X’s new share = Old share + gain
= 3/6 + (2/3 of Y’s share)
= 3/6 + (2/3 of 2/6)
= 13/18
Z’s new share = Old share + gain
= 1/6 + (1/3 of Y’s share)
= 1/6 + (1/3 of 2/6)
= 5/18
New profit sharing ratio = 13 : 5 (X : Z)