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Subjects

Accountancy

New Ratios

New Ratios is a Class 12 Accountancy topic in the chapter “Reconstitution - Retirement or Death of a Partner.” Students learn how to determine the continuing partners’ new profit-sharing ratio when a partner retires or dies. The topic explains how to adjust the old ratio for the outgoing partner’s share and calculate the gaining ratio. It also connects these ratios with goodwill adjustments and other partnership reconstitution entries, using examples that distinguish old, new, gaining and sacrificing ratios.

Expert · Level 6 · 14 questions

Practice questions

01A B and C share in 7:1:2. C dies and A B new ratio is 3:2. Which statement is correct?

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02A, B and C share profits and losses in the ratio 7:1:2. C dies, and the new profit-sharing ratio of A and B becomes 3:2. What is B’s gain in share?

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03A, B, C and D share profits in the ratio 1:3:4:2. D retires, and A, B and C acquire D’s share in the ratio 1:1:2. What will be the new profit-sharing ratio?

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04When can gaining ratio and sacrificing ratio appear in the same question?

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05A B and C share in 2:2:6. C retires and A B take his share in old mutual ratio. What will be the new ratio?

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06A, B and C share profits in the ratio 2:2:6. C retires, and the new profit-sharing ratio of A and B becomes 1:1. What will be the gaining ratio of A and B?

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07A, B, C and D share profits in 2:3:3:2. C dies and A, B and D take his share in 2:2:1. What will be the new ratio?

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08A B and C share in 3:6:1. C retires and only A takes his share. What will be the new ratio?

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09A, B and C share profits in the ratio 3:6:1. C retires, and A takes over C’s entire share. What is the simplified new profit-sharing ratio of A and B?

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10A, B and C share profits and losses in the ratio 4:4:2. C retires, and B alone takes over C’s entire share. What will be the gaining ratio of A and B?

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11A, B and C share profits in the ratio 2:5:3. After A retires, B and C agree to share profits in the new ratio 6:4. What will be the gaining ratio of B and C?

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12A, B and C share profits in the ratio 6:2:2. After A's retirement, the new profit-sharing ratio of B and C is fixed at 5:5. Which statement correctly describes the change?

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13While finding gaining ratio from new ratio which comparison is essential?

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14A, B, C and D share profits in the ratio 1:4:2:3. C dies, and A, B and D acquire C’s share in the ratio 2:1:1. What will be the new profit-sharing ratio of A, B and D?

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