State two basis lor determination of Profits from the date oflast Balance Sheet to the date of death/retirement. Post category:Accountancy Reading time:1 mins read SOLUTION (i) On Time Basis (ii) On Sales Basis. 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 journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner? Next PostWhy is Gaining Ratio calculated? You Might Also Like What is meant by ‘Fluctuating Capital’ of a partner? (AI 2016 C) October 7, 2022 Why is it necessary to have a partnership deed? September 26, 2022 (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 retires 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 retires from the business. A is acquiring 4/9 of C’s share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio. August 3, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
(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 retires 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 retires from the business. A is acquiring 4/9 of C’s share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio. August 3, 2022