56 :- Amrit, Bhanu and Charu were partners in a firm sharing profits equally. Bhanu retired on 30th September 2023. Profit till the date of retirement was to be estimated based on last year’s profit. Profit for the year ended 31st March 2023 was Rs 3,60,000.
Calculate Bhanu’s share of profit till his retirement and pass Journal entry/entries for the same when
(a) The profit sharing ratio between Amrit and Charu does not change; and
(b) The new profit sharing ratio between Amrit and Charu changes to 3:2.
Solution :-
CASE 1 :- Profit for the year = Rs 3,60,000
Bhanu retired on 30th september
Bhanu’s share in profit = 3,60,000 x 1/3 x 6/12
= Rs 60,000
CASE 2 :- Old ratio of Amrit, Bhanu and Charu is 1:1:1
New ratio of Amrit and Charu = 3:2
Amrit = 3/5 – 1/3 = 9-5/15 = 4/15
Charu = 2/5 – 1/3 = 6 – 5/15 = 1/15
Bhanu’s share in profit = 3,60,000 x 1/3 x 6/12 = Rs 60,000
Amrit will contribute = 60,000 x 4/5 = Rs 48,000
Charu will contribute = 60,000 x 1/5 = Rs 12,000
