Why is Gaining Ratio calculated? Post category:Accountancy Reading time:1 mins read SOLUTION Gaining ratio is required because the continuing partners will pay the amount of goodwill to the retiring partner in their gaining 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 PostState two basis lor determination of Profits from the date oflast Balance Sheet to the date of death/retirement. Next PostWhy are assets and liabilities revalued at the time of retirement of a partner? You Might Also Like Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 2: 1. Mohan was admitted for 1/3rd share in the profits. On the date of Mohan’s admission, the Balance Sheet of Ram and Shyam showed General Reserve of Rs. 2,50,000 and a credit balance of Rs. 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Mohan’s admission. November 4, 2022 R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retire from the business and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit-sharing ratio. August 3, 2022 Record necessary Journal entries in the following cases: (a) Creditors worth Rs. 85,000 accepted Rs. 40,000 as cash and Investment worth Rs. 43,000, in full settlement of their claim. (b) Creditors were Rs. 16,000. They accepted Machinery valued at Rs. 18,000 in settlement of their claim. (c) Creditors were Rs. 90,000. They accepted Building valued at Rs. 1,20,000 and paid cash to the firm Rs. 30,000. July 25, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 2: 1. Mohan was admitted for 1/3rd share in the profits. On the date of Mohan’s admission, the Balance Sheet of Ram and Shyam showed General Reserve of Rs. 2,50,000 and a credit balance of Rs. 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Mohan’s admission. November 4, 2022
R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retire from the business and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit-sharing ratio. August 3, 2022
Record necessary Journal entries in the following cases: (a) Creditors worth Rs. 85,000 accepted Rs. 40,000 as cash and Investment worth Rs. 43,000, in full settlement of their claim. (b) Creditors were Rs. 16,000. They accepted Machinery valued at Rs. 18,000 in settlement of their claim. (c) Creditors were Rs. 90,000. They accepted Building valued at Rs. 1,20,000 and paid cash to the firm Rs. 30,000. July 25, 2022