Anu, Prabha and Milli are partners. Anu retires. Calculate the future ...
**Given Information:**
- Anu, Prabha, and Milli are partners.
- Anu retires.
- The future profit sharing ratio of continuing partners and gaining ratio needs to be calculated.
- There are two scenarios to consider:
(a) Acquiring Anu's share in the ratio of 5:3.
(b) Acquiring Anu's share equally.
**Calculation:**
1. Calculate the Profit Sharing Ratio before Anu's Retirement:
- Let's assume the profit sharing ratio of Anu, Prabha, and Milli before Anu's retirement is A:B:C.
- The sum of the profit sharing ratios of all partners is usually equal to the total number of partners.
- Therefore, A + B + C = 3. (Total number of partners = 3)
2. Calculate the Share of Anu before Retirement:
- Suppose the total profit of the partnership is P.
- Anu's share of the profit before retirement can be calculated as:
- Anu's Share = (A / (A + B + C)) * P = (A / 3) * P
3. Calculate the Share of Prabha and Milli after Anu's Retirement:
- Since Anu is retiring, her share will be distributed between Prabha and Milli according to the given ratio.
- (a) If the ratio is 5:3:
- Prabha's Share = (5 / (5 + 3)) * (A / 3) * P = (5 / 8) * (A / 3) * P
- Milli's Share = (3 / (5 + 3)) * (A / 3) * P = (3 / 8) * (A / 3) * P
- (b) If the ratio is equal:
- Prabha's Share = (1 / 2) * (A / 3) * P = (A / 6) * P
- Milli's Share = (1 / 2) * (A / 3) * P = (A / 6) * P
4. Calculate the Future Profit Sharing Ratio of Continuing Partners:
- The future profit sharing ratio of Prabha and Milli will be the new ratio of their shares after Anu's retirement.
- (a) If the ratio is 5:3:
- Future Profit Sharing Ratio of Prabha = Prabha's Share / (Prabha's Share + Milli's Share)
- Future Profit Sharing Ratio of Milli = Milli's Share / (Prabha's Share + Milli's Share)
- (b) If the ratio is equal:
- Future Profit Sharing Ratio of Prabha = Prabha's Share / (Prabha's Share + Milli's Share)
- Future Profit Sharing Ratio of Milli = Milli's Share / (Prabha's Share + Milli's Share)
5. Calculate the Gaining Ratio:
- The gaining ratio is the difference between the future profit sharing ratio and the existing profit sharing ratio of the continuing partners.
- Gaining Ratio = Future Profit Sharing Ratio - Existing Profit Sharing Ratio
**Summary:**
- The future profit sharing ratio of continuing partners and
Anu, Prabha and Milli are partners. Anu retires. Calculate the future ...
I think there were not any deed,soo the profit share would be equally