₹ 3,60,000
When a partner dies, the surviving partners may decide to continue the business. Their capitals are then adjusted according to their new profit-sharing ratio.
Calculating Total Adjusted Capital
First, find the total adjusted capital of the surviving partners, B and C. This is the sum of their capitals after all adjustments, including those related to the deceased partner's share.
- B's Adjusted Capital: ₹ 3,56,000
- C's Adjusted Capital: ₹ 2,44,000
- Total Adjusted Capital = ₹ 3,56,000 + ₹ 2,44,000 = ₹ 6,00,000
Determining New Profit-Sharing Ratio
The original profit-sharing ratio was A:B:C = $4:3:2$. After A's death, the remaining partners B and C will share profits in their old proportion unless a new ratio is specified. Therefore, the new profit-sharing ratio between B and C is $3:2$.
Calculating B's New Capital
The total adjusted capital of ₹ 6,00,000 is now to be divided between B and C in their new profit-sharing ratio ($3:2$).
- B's New Capital = Total Adjusted Capital $\times$ (B's share in the new ratio)
- B's New Capital = ₹ 6,00,000 $\times \frac{3}{(3+2)}$
- B's New Capital = ₹ 6,00,000 $\times \frac{3}{5}$
- B's New Capital = ₹ 3,60,000
Thus, the new capital of Partner B is ₹ 3,60,000.
Important Questions from Partnership Accounts
X and Y are partners in a partnership firm without any agreement. X has withdrawn Rs. 55,000 out of his capital as drawings. What is the interest on drawings that may be charged from X by the firm?
In case of a Partnership Firm, a ______ is prepared to show the distribution of profits among different partners.
The _______ Account shows the distribution of profit after the same has been earned and computed by a partnership firm.
X and Y are partners in a business sharing profit and losses in the ratio of 3 : 2. They admit Z as a new partner with 1 / 5 share in the profits. Calculate the new profit sharing ratio of the partners.
The profit for the year before appropriation in a partnership firm was Rs. 50,000. Shagun, one of the partners, receives a salary of Rs. 4,000 and interest at 10 percent per annum on his capital of Rs. 1,00,000. Amir. the other partner receives interest on capital at the same rate as Shagun. Amir's capital was Rs. 89,000. They share profits and losses equally. What was the total share of profits credited to Amir‘s current account?
