Question 4 Chapter 6 - Unimax Class 12 Part 1

Question 4 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 4 Chapter 6 – Unimax Class 12 Part 1: –

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

4. L, M and N are partners sharing profits and losses in 5 : 3 : 2. L retires and his share is taken over by M and N equally. Calculate new profit sharing ratio.

The solution of Question 4 Chapter 6 – Unimax Class 12 Part 1: –

Old profit sharing ratio = L : M : N = 5 : 3 : 2
L retires and M and N takes L’s share equally
Gaining ratio = M : N = 1 : 1
M’s new share = Old share + gain
= 3/10 + (1/2 of L’s share)
= 3/10 + (1/2 of 5/10)
= 11/20
N’s new share = Old share + gain
= 2/10 + (1/2 of L’s share)
= 2/10 + (1/2 of 5/10)
= 9/20
New profit sharing ratio = 11 : 9 (M : N)