Question

P, Q and R were partners sharing profits and losses in the ratio 5 : 3 : 2. With effect from 1st April 2023, they decided to share future profits and losses in different ratio. On that date profit and loss account appearing on the asset side of the balance sheet was ₹ 4,00,000 and following entry was passed:

P's Capital A/c   ...Dr.	25,000
To Q's Capital A/c		5,000
To R's Capital A/c		20,000

Find new Ratio:

विकल्प

• 45 : 23 : 12

• 7 : 5 : 4

• 2 : 1 : 1

• 1 : 1 : 1

Answer 1

7 : 5 : 4

Explanation:

Gaining Partner's Capital A/cs are debited, and Sacrificing Partner's Capital A/cs are credited in the event that the profit sharing ratio changes and earnings or reserves emerge on the balance sheet but are not to be distributed. On the other hand, Gaining Partner's Capital A/cs will be credited, and Sacrificing Partner's Capital A/cs will be deducted if a loss is shown on the balance sheet.

It means:

P has Sacrificed: `(25,000)/(4,00,000) = 1/16 "shares"`

Q has Gained: `(5,000)/(4,00,000) = 1/80 "share"`

R has Gained: `(20,000)/(4,00,000) = 1/20 "share"`

P's new share: `5/10 - 1/16 = (40 - 5)/80 = 35/80`

Q's new share: `3/10 + 1/80 = (24 + 1)/80 = 25/80`

R's new share: `2/10 + 1/20 = (16 + 4)/80 = 20/80`

Hence, New Share: 35 : 25 : 20 over 7 : 5 : 4