A, B and C are the partners sharing profit in the ratio of 4 : 5 : 1.

1.	A, B and C are the partners sharing profit in the ratio of 4 : 5 : 1. Following journal entry for goodwill is passed at the time of the retirement of B.A’s capital A/c Dr 6,000C’s capital A/c Dr 4,000To B’s capital A/c 10,000
Answer» From the capital amount of A and C, we can say that gaining ratio for A and C = 3 : 2. Now, Gain = Share of retiring partner × Gain Share A’s gain = \(\frac{5}{10}\times\frac{3}{5}=\frac{15}{50}\) ; C’s gain = \(\frac{5}{10}\times\frac{2}{5}=\frac{10}{50}\) ∴ Gaining ratio = \(\frac{15}{50}:\frac{10}{50}\) = 3 : 2 Now, New share = Old share + Gain A’s ne wshare= \(\frac{4}{10}+\frac{15}{50}=\frac{20+15}{50}=\frac{35}{50}\) ; C’s new share = \(\frac{1}{10}+\frac{10}{50}=\frac{5+10}{50}=\frac{15}{50}\) ∴ New profit-loss sharing ratio for A and C = \(\frac{35}{50}:\frac{15}{50}\) = 7 : 3

A, B and C are the partners sharing profit in the ratio of 4 : 5 : 1. Following journal entry for goodwill is passed at the time of the retirement of B.A’s capital A/c Dr 6,000C’s capital A/c Dr 4,000To B’s capital A/c 10,000

Answer»

From the capital amount of A and C,

we can say that gaining ratio for A and C = 3 : 2.

Now, Gain = Share of retiring partner × Gain Share

A’s gain = \(\frac{5}{10}\times\frac{3}{5}=\frac{15}{50}\) ;

C’s gain = \(\frac{5}{10}\times\frac{2}{5}=\frac{10}{50}\)

∴ Gaining ratio = \(\frac{15}{50}:\frac{10}{50}\) = 3 : 2

Now, New share = Old share + Gain

A’s ne wshare= \(\frac{4}{10}+\frac{15}{50}=\frac{20+15}{50}=\frac{35}{50}\) ;

C’s new share = \(\frac{1}{10}+\frac{10}{50}=\frac{5+10}{50}=\frac{15}{50}\)

∴ New profit-loss sharing ratio for A and C = \(\frac{35}{50}:\frac{15}{50}\) = 7 : 3