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Ram Rahim and Peter are sharing profit ratio of 1/2:1/3:1:6 the accounts of the firm and prepared very every year on 31st March the sales and profits for the year ending on 31st March 2018 were 500000 lakh and 60000 respectively Ram Ram retire form on 10th October 2018 due to permanent disability cells till the date of retirement were 200000 calculate Ram share of profit if partnership that provide that profit in such cases be calculated on sales basics?
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Ram Rahim and Peter are sharing profit ratio of 1/2:1/3:1:6 the accoun...
Partnership Profit Sharing Ratio
- Ram Rahim and Peter share profit ratio of 1/2:1/3:1:6

Accounts Preparation
- Accounts of the firm are prepared every year on 31st March

Sales and Profits for the Year Ending 31st March 2018
- Sales: 500000 lakh
- Profits: 60000

Retirement of Ram Rahim
- Ram Rahim retires on 10th October 2018 due to permanent disability
- Sales till the date of retirement were 200000

Profit Calculation Basis
- Partnership agreement provides that profit in such cases be calculated on sales basis

Calculation of Ram's Share of Profit
- Total sales for the year: 500000 lakh
- Sales till Ram's retirement: 200000 lakh
- Sales after Ram's retirement: 300000 lakh
- Profit for the year: 60000
- Profit on sales basis: (60000/500000) x 100 = 12%
- Profit till Ram's retirement: 12% x 200000 = 24000
- Remaining profit after Ram's retirement: 60000 - 24000 = 36000
- Ram's profit share: (1/2 + 1/3) x 36000 = 18000

Explanation
- Ram Rahim and Peter share profit in the ratio of 1/2:1/3:1:6
- This means that out of the total profit, Ram gets 1/2, Peter gets 1/3, and the remaining 1/6 is shared by the other partners.
- The partnership agreement provides that profit in such cases be calculated on sales basis.
- Sales till the date of Ram's retirement were 200000 lakh, and sales after his retirement were 300000 lakh.
- The total profit for the year was 60000, which is 12% of the total sales.
- Ram's share of profit till his retirement is calculated by multiplying his profit share ratio (1/2 + 1/3) with the profit earned till his retirement (24000).
- The remaining profit after Ram's retirement is 36000, which is shared between the other partners according to their profit sharing ratio.
Community Answer
Ram Rahim and Peter are sharing profit ratio of 1/2:1/3:1:6 the accoun...
When we simplify the profit sharing ratio, then tne profit sharing ratio is 3:2:1. Sales and profit of the previous year are 500000 and 60000. So the rate of the profit will be 12% on sales. Sales of the described time period is 200000. So whole profit will be 24000 as the rate will be 12% on sales because we have to calculate profit on sales basics. When we'll distribute the profit of 24000 in the ratio of 3:2:1, then Ram's share of profit will be 12000.
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Ram Rahim and Peter are sharing profit ratio of 1/2:1/3:1:6 the accounts of the firm and prepared very every year on 31st March the sales and profits for the year ending on 31st March 2018 were 500000 lakh and 60000 respectively Ram Ram retire form on 10th October 2018 due to permanent disability cells till the date of retirement were 200000 calculate Ram share of profit if partnership that provide that profit in such cases be calculated on sales basics?
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Ram Rahim and Peter are sharing profit ratio of 1/2:1/3:1:6 the accounts of the firm and prepared very every year on 31st March the sales and profits for the year ending on 31st March 2018 were 500000 lakh and 60000 respectively Ram Ram retire form on 10th October 2018 due to permanent disability cells till the date of retirement were 200000 calculate Ram share of profit if partnership that provide that profit in such cases be calculated on sales basics? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ram Rahim and Peter are sharing profit ratio of 1/2:1/3:1:6 the accounts of the firm and prepared very every year on 31st March the sales and profits for the year ending on 31st March 2018 were 500000 lakh and 60000 respectively Ram Ram retire form on 10th October 2018 due to permanent disability cells till the date of retirement were 200000 calculate Ram share of profit if partnership that provide that profit in such cases be calculated on sales basics? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram Rahim and Peter are sharing profit ratio of 1/2:1/3:1:6 the accounts of the firm and prepared very every year on 31st March the sales and profits for the year ending on 31st March 2018 were 500000 lakh and 60000 respectively Ram Ram retire form on 10th October 2018 due to permanent disability cells till the date of retirement were 200000 calculate Ram share of profit if partnership that provide that profit in such cases be calculated on sales basics?.
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