Question 6 Chapter 6 - Unimax Class 12 Part 1

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

Table of Contents

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

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

6. P, Q and R are partners sharing profits in ratio of 9 : 7 : 4. Q retires from the firm. The amount due to Q on retirement on account of Goodwill was calculated to be Rs. 35000. Calculate new and gaining ratio, if :

P contributes Rs. 20000 and R Rs. 15000 to take Q’s share.
P pays Rs. 10000 and Rs. 25000 to clear Q’s share.

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

If P contributed Rs. 20000 and R contributes Rs. 15000 to pay Q’s share of goodwill Rs. 35000, then gaining ratio of P and R = 20000 : 15000 = 4 : 3
P’s new share = Old share + gain
= 9/20 + (4/7 of Q’s share)
= 9/20 + (4/7 of 7/20)
= 13/20
R’s new share = Old share + gain
= 4/20 + (3/7 of Q’s share)
= 4/20 + (3/7 of 7/20)
= 7/20
New profit sharing ratio = 13 : 7 (P : R)

(b) If P contributed Rs. 10000 and R contributes Rs. 25000 to pay Q’s share of goodwill Rs. 35000, then gaining ratio of P and R = 10000 : 25000 = 2 : 5
P’s new share = Old share + gain
= 9/20 + (2/7 of Q’s share)
= 9/20 + (2/7 of 7/20)
= 11/20
R’s new share = Old share + gain
= 4/20 + (5/7 of Q’s share)
= 4/20 + (5/7 of 7/20)
= 9/20
New profit sharing ratio = 11 : 9 (P : R)