Give two circumstances in which the Gaining Ratio is computed. Post category:Accountancy Reading time:1 mins read SOLUTION (i) When a partner retires or dies.(ii) When there is a change in the 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 PostGive the formula for calculating ‘gaining share’ of a partner in a partnership firm. Next PostA, B and C were partners in a firm sharing profits and losses in the ratio of 4: 3: 2. B retired and his share was taken over by A and C equally. Calculate the gaining ratio. (C.B.S.E. 2019) You Might Also Like What will be the operating profit ratio, if operating ratio is 88.94%? October 3, 2022 Capital Employed Rs.8,00,000; Shareholders’ Funds Rs. 2,00,000. Calculate Debt to Equity Ratio. August 12, 2022 X and Y entered into partnership on 1st April, 2017. Their capitals as on 1st April, 2018 were Rs. 2,00,000 and Rs. 1,50,000 respectively. On 1st October, 2018, X gave Rs. 50,000 as loan to the firm. As per the provisions of the partnership Deed: (i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve. (ii) Interest on capital at 12% p.a. and Interest on Drawings @ 10% p.a. (iii) X to get monthly salary of Rs. 5,000 and Y to get salary of Rs. 22,500 per quarter. (iv) X is entitled to a commission of 5% on sales. Sales for the year were Rs. 3,50,000. (v) Profit to be shared in the ratio of their capitals up to Rs. 1,75,000 and balance equally. Profit for the year ended 31st March, 2019 before allowing or charging interest was Rs. 4,61,000. The drawings of X and Y were Rs. 1,00,000 and Rs. 1,25,000 respectively. Pass the necessary Journal entries relating to appropriation out of profit. Prepare Profit and Loss Appropriation Account and the Partners’ Capital Accounts. July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Capital Employed Rs.8,00,000; Shareholders’ Funds Rs. 2,00,000. Calculate Debt to Equity Ratio. August 12, 2022
X and Y entered into partnership on 1st April, 2017. Their capitals as on 1st April, 2018 were Rs. 2,00,000 and Rs. 1,50,000 respectively. On 1st October, 2018, X gave Rs. 50,000 as loan to the firm. As per the provisions of the partnership Deed: (i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve. (ii) Interest on capital at 12% p.a. and Interest on Drawings @ 10% p.a. (iii) X to get monthly salary of Rs. 5,000 and Y to get salary of Rs. 22,500 per quarter. (iv) X is entitled to a commission of 5% on sales. Sales for the year were Rs. 3,50,000. (v) Profit to be shared in the ratio of their capitals up to Rs. 1,75,000 and balance equally. Profit for the year ended 31st March, 2019 before allowing or charging interest was Rs. 4,61,000. The drawings of X and Y were Rs. 1,00,000 and Rs. 1,25,000 respectively. Pass the necessary Journal entries relating to appropriation out of profit. Prepare Profit and Loss Appropriation Account and the Partners’ Capital Accounts. July 21, 2022