What is meant by ‘Gaining Ratio’ on retirement of a partner? (C.B.S.E. 2019) Post category:Accountancy Reading time:1 mins read SOLUTION Gaining ratio is the ratio in which the remaining, i.e., continuing partners take the retiring partner’s share of profit. 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 is meant by retirement of a partner? Next PostWhy do we calculate Gaining Ratio? You Might Also Like A, B and C were partners. Their fixed capitals were Rs 60,000, Rs. 40,000 and Rs. 20,000 respectively. Their profit-sharing ratio was 2 : 2 : 1. According to the Partnership Deed, they were entitled to interest on capital @ 5% p.a. In addition, B was also entitled to draw a salary of Rs. 1,500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year, Rs. 80,000, were distributed in the ratio of their capitals without providing for any of the above adjustments. Showing your workings clearly, pass the necessary adjustment entry. July 22, 2022 The inventory turnover ratio of a Company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the value of closing inventory by Rs. 5,000. October 3, 2022 Dev withdrew & 10,000 on 15th day of every month. Interest on drawings was to be charged @ 12 P.a. Calculate interest on Dev’s Drawings. July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A, B and C were partners. Their fixed capitals were Rs 60,000, Rs. 40,000 and Rs. 20,000 respectively. Their profit-sharing ratio was 2 : 2 : 1. According to the Partnership Deed, they were entitled to interest on capital @ 5% p.a. In addition, B was also entitled to draw a salary of Rs. 1,500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year, Rs. 80,000, were distributed in the ratio of their capitals without providing for any of the above adjustments. Showing your workings clearly, pass the necessary adjustment entry. July 22, 2022
The inventory turnover ratio of a Company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the value of closing inventory by Rs. 5,000. October 3, 2022
Dev withdrew & 10,000 on 15th day of every month. Interest on drawings was to be charged @ 12 P.a. Calculate interest on Dev’s Drawings. July 21, 2022