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A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 shown in books of account. If A & C shares profits of B in 5:3, then find the new profit sharing ratio.
- a)13:11.
- b)17:11.
- c)31:11.
- d)14:21.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A, B and C are partners with profits sharing ratio 4:3:2. B retires an...
Given, A:B:C = 4:3:2 and B retires.
Step 1: Calculating B's share in the profits
Let the total profits be x.
B's share = 3/(4+3+2) * x = 3/9 * x = x/3
Step 2: Calculating the value of Goodwill
Goodwill = Rs. 10,800
Step 3: Calculating the amount to be paid to B
As per the question, A and C will share B's profits in the ratio of 5:3.
Total share of A and C = 5+3 = 8
B's share = x/3
Therefore, A's share = (5/8) * (x/3) = 5x/24
C's share = (3/8) * (x/3) = 3x/24 = x/8
Total amount to be paid to B = Goodwill + B's share in profits - A's share - C's share
= 10,800 + (x/3) - (5x/24) - (x/8)
= 10,800 + x/24
Step 4: Calculating the new profit sharing ratio
Let the new profit sharing ratio be P:Q:R.
P = A's new share in profits
Q = B's new share in profits (which is 0 as B has retired)
R = C's new share in profits
Total profit = x + 10,800 (Goodwill)
Total share of A, B and C = P + Q + R = P + R (as Q = 0)
As per the question, A:C share B's profits in the ratio of 5:3.
Therefore, A's new share = 4/9 * (x + 10,800) + 5/8 * (x/3)
C's new share = 2/9 * (x + 10,800) + 3/8 * (x/3)
Total share of A and C = P + R = A's new share + C's new share
= (4/9 * (x + 10,800) + 5/8 * (x/3)) + (2/9 * (x + 10,800) + 3/8 * (x/3))
= (8x + 77,760)/216
Therefore, the new profit sharing ratio P:Q:R = (4/9 * (x + 10,800) + 5/8 * (x/3)):(0):(2/9 * (x + 10,800) + 3/8 * (x/3))
Simplifying this, we get P:Q:R = 13:0:11
Hence, the correct answer is option A.
Step 1: Calculating B's share in the profits
Let the total profits be x.
B's share = 3/(4+3+2) * x = 3/9 * x = x/3
Step 2: Calculating the value of Goodwill
Goodwill = Rs. 10,800
Step 3: Calculating the amount to be paid to B
As per the question, A and C will share B's profits in the ratio of 5:3.
Total share of A and C = 5+3 = 8
B's share = x/3
Therefore, A's share = (5/8) * (x/3) = 5x/24
C's share = (3/8) * (x/3) = 3x/24 = x/8
Total amount to be paid to B = Goodwill + B's share in profits - A's share - C's share
= 10,800 + (x/3) - (5x/24) - (x/8)
= 10,800 + x/24
Step 4: Calculating the new profit sharing ratio
Let the new profit sharing ratio be P:Q:R.
P = A's new share in profits
Q = B's new share in profits (which is 0 as B has retired)
R = C's new share in profits
Total profit = x + 10,800 (Goodwill)
Total share of A, B and C = P + Q + R = P + R (as Q = 0)
As per the question, A:C share B's profits in the ratio of 5:3.
Therefore, A's new share = 4/9 * (x + 10,800) + 5/8 * (x/3)
C's new share = 2/9 * (x + 10,800) + 3/8 * (x/3)
Total share of A and C = P + R = A's new share + C's new share
= (4/9 * (x + 10,800) + 5/8 * (x/3)) + (2/9 * (x + 10,800) + 3/8 * (x/3))
= (8x + 77,760)/216
Therefore, the new profit sharing ratio P:Q:R = (4/9 * (x + 10,800) + 5/8 * (x/3)):(0):(2/9 * (x + 10,800) + 3/8 * (x/3))
Simplifying this, we get P:Q:R = 13:0:11
Hence, the correct answer is option A.
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A, B and C are partners with profits sharing ratio 4:3:2. B retires an...
Nopes...I think 47:25 is the correct ans ...
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A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 shown in books of account. If A & C shares profits of B in 5:3, then find the new profit sharing ratio.a)13:11.b)17:11.c)31:11.d)14:21.Correct answer is option 'A'. Can you explain this answer?
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A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 shown in books of account. If A & C shares profits of B in 5:3, then find the new profit sharing ratio.a)13:11.b)17:11.c)31:11.d)14:21.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 shown in books of account. If A & C shares profits of B in 5:3, then find the new profit sharing ratio.a)13:11.b)17:11.c)31:11.d)14:21.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 shown in books of account. If A & C shares profits of B in 5:3, then find the new profit sharing ratio.a)13:11.b)17:11.c)31:11.d)14:21.Correct answer is option 'A'. Can you explain this answer?.
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