57 :- Amar, Bhuvi and Charan were partners in a firm sharing profits equally. Bhuvi retired on 30th September 2023. Profit or loss till the date of retirement was to be estimated based on last year’s profit. Loss for the year ended 31st March 2023 was Rs 1,80,000.
Calculate Bhuvi’s share of loss till her retirement and pass Journal entry/entries for the same when
(a) The profit sharing ratio between Amar and Charan does not change; and
(b) The new profit-sharing ratio between Amar and Charan changes to 3:2.
Solution :-
CASE 1 :- Loss for the year = Rs 1,80,000
Bhuvi retired on 30th September
Bhuvi’s share in loss = 1,80,000 x 1/3 x 6/12
= Rs 30,000
CASE 2 :- Old ratio of Amar, Bhuvi and Charan is 1:1:1
New ratio of Amar and Charan = 3:2
Amar = 3/5 – 1/3 = 9 – 5/15 = 4/15
Charan = 2/5 – 1/3 = 6 – 5/15 = 1/15
Gaining ratio of Amar and Charan is 4:1
Bhuvi’s share in loss = 1,80,000 x 1/3 x 6/12 = Rs 30,000
Amar will get = 30,000 x 4/5 = Rs 24,000
Charan will get = 30,000 x 1/5 = Rs 6,000
