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A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be?
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A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires...
Calculation of New Profit Sharing Ratio
- Old profit sharing ratio of A, B and C = 1/2 : 3/10 : 1/5
- Total profit sharing ratio = (5 + 3 + 2)/10 = 1
- B's share of profit = 3/10
- A bought B's share of profit for ₹ 30,000
- C bought B's share of profit for ₹ 60,000
- Total amount paid for B's share of profit = ₹ 90,000 (30,000 + 60,000)
- New share of profit for A = 1/2 + 3/10 x (30,000/90,000) = 4/7
- New share of profit for C = 1/5 + 3/10 x (60,000/90,000) = 3/10
- New share of profit for B = 0 (since he has retired)
Explanation
When B retires, his share of profit needs to be distributed between the remaining partners, A and C. The total amount paid by A and C for B's share of profit is ₹ 90,000, which is divided between A and C based on their existing profit sharing ratio.
After the new distribution, A's share of profit increases from 1/2 to 4/7, while C's share of profit increases from 1/5 to 3/10. B's share of profit becomes zero since he has retired.
The new profit sharing ratio is therefore 4/7 : 0 : 3/10, which can be simplified to 8 : 0 : 3.
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A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires...
A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be?
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A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be?
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A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be?.
A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C ₹ 60,000 . New profit sharing ratio will be?.
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