In the absence of partnership deed, what is the ratio in which the profits of a firm are divided among the partners? Post category:Accountancy Reading time:1 mins read SOLUTION Equally. 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 PostIs a sleeping* partner liable to the acts of other partners? Next PostIn the absence of partnership deed, at which rate interest is allowed on a partner’s loan? You Might Also Like Vikas, Gagan and Momita were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2014 Momita died. According to the provisions of Partnership Deed the legal representatives of a deceased partner are entitled for the following in the event of his/her death: (a) Capital as per the last Balance Sheet. (b) Interest on capital at 6% per annum till the date of her death. (c) Her share of profit to the date of death calculated on the basis of average profit of last four years. (d) Her share of goodwill to be determined on the basis of three years’ purchase of the average profit of last four years. The profits of last four years were: August 5, 2022 X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership. X gives 1/3rd of his share while Y gives 1/10th from his share to Z. Calculate new profit-sharing ratio and sacrificing ratio. July 29, 2022 X, Y and Z are equal partners with capitals of Rs. 1,500; Rs. 1,750 and Rs. 2,000 respectively. They agree to admit W into equal partnership upon payment in cash Rs. 1,500 for 1/4th share of the goodwill and Rs. 1,800 as his capital, both sums to remain in the business. The liabilities of the old firm amounted to Rs. 3,000 and the assets, apart from cash, consist of Motors Rs. 1,200, Furniture Rs. 400, Stock Rs. 2,650 and Debtors Rs. 3,780. The Motors and Furniture were revalued at Rs. 950 and Rs. 380 respectively. Pass Journal entries to give effect to the above arrangement and also show Balance Sheet of the new firm. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Vikas, Gagan and Momita were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2014 Momita died. According to the provisions of Partnership Deed the legal representatives of a deceased partner are entitled for the following in the event of his/her death: (a) Capital as per the last Balance Sheet. (b) Interest on capital at 6% per annum till the date of her death. (c) Her share of profit to the date of death calculated on the basis of average profit of last four years. (d) Her share of goodwill to be determined on the basis of three years’ purchase of the average profit of last four years. The profits of last four years were: August 5, 2022
X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership. X gives 1/3rd of his share while Y gives 1/10th from his share to Z. Calculate new profit-sharing ratio and sacrificing ratio. July 29, 2022
X, Y and Z are equal partners with capitals of Rs. 1,500; Rs. 1,750 and Rs. 2,000 respectively. They agree to admit W into equal partnership upon payment in cash Rs. 1,500 for 1/4th share of the goodwill and Rs. 1,800 as his capital, both sums to remain in the business. The liabilities of the old firm amounted to Rs. 3,000 and the assets, apart from cash, consist of Motors Rs. 1,200, Furniture Rs. 400, Stock Rs. 2,650 and Debtors Rs. 3,780. The Motors and Furniture were revalued at Rs. 950 and Rs. 380 respectively. Pass Journal entries to give effect to the above arrangement and also show Balance Sheet of the new firm. August 1, 2022
