What is meant by New Profit-sharing Ratio in case of admission of a partner? Post category:Accountancy Reading time:1 mins read SOLUTION The ratio in which all partners, including the incoming partner, will share the profits and losses in future is known as New Profit-sharing Ratio. 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 PostAt the time of admission of a new partner in the firm, the new partner compensates the old partners for their loss of share in the Super Profits of the firm for which he brings in an additional amount which is known as__. (CBSE 2020) Next PostHow is Sacrificing Ratio calculated? You Might Also Like Ajay, Binay and Chetan were partners sharing profits in the ratio of 3 : 3 : 2. The Partnership Deed provided for the following: (i) Salary of Rs. 2,000 per quarter to Ajay and Binay. (ii) Chetan was entitled to a commission of Rs. 8,000 (iii) Binay was guaranteed a profit of Rs. 50,000 p.a. The profit of the firm for the year ended 31st March, 2015 was Rs. 1,50,000 which was distributed among Ajay, Binay and Chetan in the ratio of 2 : 2 : 1, without taking into consideration the provisions of Partnership Deed. Pass necessary rectifying entry for the above adjustments in the books of the firm. Show your workings clearly. July 22, 2022 X, Y and Z were partners in a firm. Z died on 31st May, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of before death. Profits for the year ended 31st March, 2018, 2019 and 2020 were Rs. 18,000, Rs. 19,000 and Rs. 17,000 respectively. Calculate Z’s share of profit till his death and pass necessary Journal entry for the same when: (a) there is no change in profit-sharing ratio of remaining partners, and (b) there is change in profit-sharing ratio of remaining partners, new ratio being 3: 2. August 5, 2022 Following is the extract from the Balance Sheet of Zee Ltd .: August 18, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ajay, Binay and Chetan were partners sharing profits in the ratio of 3 : 3 : 2. The Partnership Deed provided for the following: (i) Salary of Rs. 2,000 per quarter to Ajay and Binay. (ii) Chetan was entitled to a commission of Rs. 8,000 (iii) Binay was guaranteed a profit of Rs. 50,000 p.a. The profit of the firm for the year ended 31st March, 2015 was Rs. 1,50,000 which was distributed among Ajay, Binay and Chetan in the ratio of 2 : 2 : 1, without taking into consideration the provisions of Partnership Deed. Pass necessary rectifying entry for the above adjustments in the books of the firm. Show your workings clearly. July 22, 2022
X, Y and Z were partners in a firm. Z died on 31st May, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of before death. Profits for the year ended 31st March, 2018, 2019 and 2020 were Rs. 18,000, Rs. 19,000 and Rs. 17,000 respectively. Calculate Z’s share of profit till his death and pass necessary Journal entry for the same when: (a) there is no change in profit-sharing ratio of remaining partners, and (b) there is change in profit-sharing ratio of remaining partners, new ratio being 3: 2. August 5, 2022