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ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.?
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ABC are partners sharing profit and losses in the ratio of 4 :3:1respe...
Journal Entries
1. To record the sale of B's share to A:
- A's Capital Account Dr. = Rs 3,600
- C's Capital Account Dr. = Rs 4,500
- To B's Capital Account = Rs 8,100
2. To record the retirement of B:
- B's Capital Account Dr. = Rs 8,100
- To A's Capital Account = Rs 3,600
- To C's Capital Account = Rs 4,500
New Profit Sharing Ratio
The new profit sharing ratio after B's retirement can be calculated by adjusting the remaining partners' ratios to the total ratio of 4:3:1.
The total ratio before B's retirement is 4 + 3 + 1 = 8.
To find the new ratio:
- A's share: (4/8) x 100 = 50%
- C's share: (3/8) x 100 = 37.5%
Therefore, the new profit sharing ratio is 50:37.5:1.
Distribution of Profit
The total profit for the year after B's retirement is Rs 10,500.
To calculate the individual profit shares of A and C:
- A's share: (50/100) x Rs 10,500 = Rs 5,250
- C's share: (37.5/100) x Rs 10,500 = Rs 3,937.50
Explanation
1. Journal Entries:
- The sale of B's share to A and C is recorded by debiting A's and C's capital accounts and crediting B's capital account. This reflects the transfer of B's share to A and C.
- The retirement of B is recorded by debiting B's capital account and crediting A's and C's capital accounts. This reflects the adjustment of B's capital upon his retirement.
2. New Profit Sharing Ratio:
- The new profit sharing ratio is determined by adjusting the ratios of the remaining partners (A and C) to the total ratio before B's retirement.
- The adjusted ratios reflect the new distribution of profits among the partners.
3. Distribution of Profit:
- The profit is distributed based on the new profit sharing ratio.
- The individual profit shares are calculated by multiplying the respective ratios with the total profit amount.
1. To record the sale of B's share to A:
- A's Capital Account Dr. = Rs 3,600
- C's Capital Account Dr. = Rs 4,500
- To B's Capital Account = Rs 8,100
2. To record the retirement of B:
- B's Capital Account Dr. = Rs 8,100
- To A's Capital Account = Rs 3,600
- To C's Capital Account = Rs 4,500
New Profit Sharing Ratio
The new profit sharing ratio after B's retirement can be calculated by adjusting the remaining partners' ratios to the total ratio of 4:3:1.
The total ratio before B's retirement is 4 + 3 + 1 = 8.
To find the new ratio:
- A's share: (4/8) x 100 = 50%
- C's share: (3/8) x 100 = 37.5%
Therefore, the new profit sharing ratio is 50:37.5:1.
Distribution of Profit
The total profit for the year after B's retirement is Rs 10,500.
To calculate the individual profit shares of A and C:
- A's share: (50/100) x Rs 10,500 = Rs 5,250
- C's share: (37.5/100) x Rs 10,500 = Rs 3,937.50
Explanation
1. Journal Entries:
- The sale of B's share to A and C is recorded by debiting A's and C's capital accounts and crediting B's capital account. This reflects the transfer of B's share to A and C.
- The retirement of B is recorded by debiting B's capital account and crediting A's and C's capital accounts. This reflects the adjustment of B's capital upon his retirement.
2. New Profit Sharing Ratio:
- The new profit sharing ratio is determined by adjusting the ratios of the remaining partners (A and C) to the total ratio before B's retirement.
- The adjusted ratios reflect the new distribution of profits among the partners.
3. Distribution of Profit:
- The profit is distributed based on the new profit sharing ratio.
- The individual profit shares are calculated by multiplying the respective ratios with the total profit amount.
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ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.?
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ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.?.
ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.?.
Solutions for ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? in English & in Hindi are available as part of our courses for Class 12.
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Here you can find the meaning of ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? defined & explained in the simplest way possible. Besides giving the explanation of
ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.?, a detailed solution for ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? has been provided alongside types of ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? theory, EduRev gives you an
ample number of questions to practice ABC are partners sharing profit and losses in the ratio of 4 :3:1respectively. B retires selling his share of profits a and c for 8100 rs3600 being paid by a and rs 4500by c. The profit for the year ofter b retirement was10500. You are required (1)to give necessary journal entries to record the above said sale of B'sshare to a and c. (2) to calculate the new profits sharing ratio. (3) distribute the profit between a and c.? tests, examples and also practice Class 12 tests.
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