Give two circumstances in which gaining ratio may be applied. Post category:Accountancy Reading time:1 mins read SOLUTION (i) At the time of retirement of a partner. (ii) At the time of change in profit sharing ratio of existing partners. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat is meant by Gaining Partners? Next PostDefine Goodwill. You Might Also Like A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They admit C, their manager, as a partner with effect from 1st April, 2020, for 1/4th share of profits. C, while a Manager, was in receipt of a salary of Rs. 27,000 p.a. and a commission of 10% of the net profits after charging such salary and commission. In terms of the Partnership Deed, any excess amount, which C will be entitled to receive as a partner over the amount which would have been due to him if he continued to be the manager, would have to be personally borne by A out of his share of profit. Profit for the year ended 31st March, 2020 amounted to Rs. 2,25,000. You are required to show Profit and Loss Appropriation Account for the year ended 31at March, 2020. July 22, 2022 A, B and C shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April, 2019, they agreed to share profits equally. The goodwill of the firm was valued at Rs. 18,000. Pass necessary Journal entries when: (a) Goodwill is adjusted through Partners’ Capital Accounts; and (b) Goodwill is raised and written off. July 27, 2022 Shiv, Mohan and Gopal are partners sharing profits and losses in the ratio of 2: 2: 1 respectively. Shiv is entitled to a commission of 10% on the net profit. Net profit for the year is Rs. 1,10,000. Determine the amount of commission payable to Shiv. October 11, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They admit C, their manager, as a partner with effect from 1st April, 2020, for 1/4th share of profits. C, while a Manager, was in receipt of a salary of Rs. 27,000 p.a. and a commission of 10% of the net profits after charging such salary and commission. In terms of the Partnership Deed, any excess amount, which C will be entitled to receive as a partner over the amount which would have been due to him if he continued to be the manager, would have to be personally borne by A out of his share of profit. Profit for the year ended 31st March, 2020 amounted to Rs. 2,25,000. You are required to show Profit and Loss Appropriation Account for the year ended 31at March, 2020. July 22, 2022
A, B and C shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April, 2019, they agreed to share profits equally. The goodwill of the firm was valued at Rs. 18,000. Pass necessary Journal entries when: (a) Goodwill is adjusted through Partners’ Capital Accounts; and (b) Goodwill is raised and written off. July 27, 2022
Shiv, Mohan and Gopal are partners sharing profits and losses in the ratio of 2: 2: 1 respectively. Shiv is entitled to a commission of 10% on the net profit. Net profit for the year is Rs. 1,10,000. Determine the amount of commission payable to Shiv. October 11, 2022