Accountancy

Dinkar, Navita and Vani were partners sharing profits and losses in the ratio of 3: 2: 1. Navita died on 30th June, 2017. Her share of profit for the intervening period was based on the sales during that period, which were Rs. 6,00,000. The rate of profit during the past four years had been 10% on sales. The firm closes its books on 31st March every year. Calculate Navita’s share of profit. (CBSE 2019)

SOLUTION Sales during that period of the firm from 1st April, 2017 to 30th June, 2017 Rs. 6,00,000The rate of profit during the past four years had been 10% on salesProfit of the firm…

Continue ReadingDinkar, Navita and Vani were partners sharing profits and losses in the ratio of 3: 2: 1. Navita died on 30th June, 2017. Her share of profit for the intervening period was based on the sales during that period, which were Rs. 6,00,000. The rate of profit during the past four years had been 10% on sales. The firm closes its books on 31st March every year. Calculate Navita’s share of profit. (CBSE 2019)

A, B, and C are partners sharing profits in the ratio of 5: 3: 2. C died and his share is taken by A. Calculate new profit-sharing ratio of A and B.

SOLUTION Old Ratio (A, B, and C) = 5: 3: 2C died from the firm.His profit share = 210B’s share is taken by A in entiretyNew Ratio = Old Ratio + Share acquired from CA 's New Share: 5/10+2/10 = 7/10B 's New Share: 3/10+0 = 310∴ New…

Continue ReadingA, B, and C are partners sharing profits in the ratio of 5: 3: 2. C died and his share is taken by A. Calculate new profit-sharing ratio of A and B.

(a) W, X, Y and Z are partners sharing profits and losses in the ratio of 1/3, 1/6, 1/3 and 1/6 respectively. Y died and W, X and Z decide to share the profits and losses equally in future. Calculate gaining ratio. (b) A, B and C are partners sharing profits and losses in the ratio of 4: 3: 2. C died. A is acquiring 4/9 of C’s share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.

SOLUTION (a)Old Ratio (W, X, Y and Z) = of 1/3: 1/6: 1/3: 1/6 or 2: 1: 2: 1New Ratio (W, X and Z) = 1: 1: 1 Gaining Ratio = New…

Continue Reading(a) W, X, Y and Z are partners sharing profits and losses in the ratio of 1/3, 1/6, 1/3 and 1/6 respectively. Y died and W, X and Z decide to share the profits and losses equally in future. Calculate gaining ratio. (b) A, B and C are partners sharing profits and losses in the ratio of 4: 3: 2. C died. A is acquiring 4/9 of C’s share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.

A, B and C were partners sharing profits in the ratio of 4: 3: 2. A died, B and C will share profits in the ratio of 2: 1. Determine the gaining ratio.

SOLUTION Old Ratio (A, B and C) = 4: 3: 2New Ratio (B and C) = 2: 1Gaining Ratio = New Ratio − Old RatioB’s gain = 2/3-3/9 = 6-3/9 = 3/9   C’s gain =…

Continue ReadingA, B and C were partners sharing profits in the ratio of 4: 3: 2. A died, B and C will share profits in the ratio of 2: 1. Determine the gaining ratio.

R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M died and his share is taken by R and S in the ratio of 1: 2. Calculate the new profit-sharing ratio.

SOLUTION Old Ratio (R, S and M) = 2: 2: 1M retires from the firm.His profit share = 1/5M’s share taken by R and S in ratio of 1: 2Share taken by R: 1/5 × 1/3 = 1/15Share taken by S: 1/5 × 2/3…

Continue ReadingR, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M died and his share is taken by R and S in the ratio of 1: 2. Calculate the new profit-sharing ratio.

From the following particulars, calculate new profit-sharing ratio of the partners: (a) Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5: 5: 4. Mohan died and his share was taken equally between Shiv and Hari. (b) P, Q and R were partners sharing profits in the ratio of 5: 4: 1. P died from.

SOLUTION (a)Old Ratio (Shiv, Mohan and Hari) = 5: 5: 4Mohan’s Profit Share = 5/14His share is divided between Shiv and Hari equally i.e., in the ratio of 1: 1Share of Mohan taken…

Continue ReadingFrom the following particulars, calculate new profit-sharing ratio of the partners: (a) Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5: 5: 4. Mohan died and his share was taken equally between Shiv and Hari. (b) P, Q and R were partners sharing profits in the ratio of 5: 4: 1. P died from.

The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2 as at 31st March, 2019 is as follows:

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Creditors50,000Cash at Bank40,000Employees' Provident Fund10,000Sundry Debtors1,00,000Profit and Loss A/c85,000Stock80,000Capital A/c :Fixed Assets60,000X - 40,000 Y - 62,000 Z - 33,0001,35,000  2,80,000 2,80,000 X retired on 1st April, 2019 and Y and Z decided to share profits in future in the…

Continue ReadingThe Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2 as at 31st March, 2019 is as follows:

Following is the Balance Sheet of Kusum, Sneh and Usha as on 31st March, 2019, who have agreed to share profits and losses in proportion of their capitals:

Liabilities Amount (Rs.)AssetsAmount(Rs.)Capital A/c : Land and Building4,00,000Kusum - 4,00,000 Machinery6,00,000Sneh - 6,00,000Closing Stock2,00,000Usha - 4,00,00014,00,000Sundry Debtors - 2,20,000Employees' Provident Fund70,000Less: Provision for Doubtful Debts - (20,000)2,00,000Workmen Compensation Reserve30,000Cash at Bank2,00,000 Sundry Creditors1,00,000   16,00,000 16,00,000 On…

Continue ReadingFollowing is the Balance Sheet of Kusum, Sneh and Usha as on 31st March, 2019, who have agreed to share profits and losses in proportion of their capitals: