Calculate new profit sharing ratio

Assignment Help Accounting Basics

Reference no: EM132652299

Question - Aman, Vikram and Sonu are partners sharing profits in the ratio of 4 : 3 : 1. Vikram retires selling his share of profits to Aman & Sonu for Rs. 8,100; Rs. 3,600 paid by Aman and 4,500 paid by Sonu. Profit for the year after Vikram retirement was Rs. 10,500.

You are required:-

1. To give necessary journal entries to record the transfer of Vikram's share to Aman and Sonu.

2. To calculate new profit sharing ratio and distribute the profits between A and C.

Reference no: EM132652299

Questions Cloud

Discuss reasons that explain the size of the premium : Discuss reasons that explain the size of the premium. Also explain why NuVasive decided to issue convertible bonds instead of regular bonds.

Financial ratio analysis : Although Financial Ratio Analysis has limitations, it is a great tool to find the problematic areas in the company so that managers can go back

How an investor can make a profit from triangular arbitrage : British pounds at an exchange rate of NZ$1 = MYR2.6900. Calculate how an investor can make a profit from triangular arbitrage with investment of AUD500

Essay on a Cultural Awareness topic : Essay on a Cultural Awareness topic and the other on Branch History and Battle Analysis Methodology - This policy will outline guidelines

Calculate new profit sharing ratio : Aman, Vikram and Sonu are partners sharing profits in the ratio of 4 : 3 : 1. To calculate new profit sharing ratio and distribute the profits between A and C

What the implied cross rate of usd or aud is : Assume the following quotes: MYR4.3520/USD, MYR2.8377/AUD, and USD0.7688/AUD. The implied cross rate of USD/AUD is ____, indicating AUD is

Determine present value of an annuity : What is the present value of an annuity of $5,700 per year, with the first cash flow received three years from today and the last one received 25 years from tod

Compute the eac for techron i : If your tax rate is 35 percent and your discount rate is 9 percent, compute the EAC for Techron I.

How a market trader can make an intermarket arbitrage : USD1.5400/Pound, euro1.6000/Pound, and USD0.9700/euro. Calculate how a market trader with $1 million can make an intermarket arbitrage profit.

User Account

All Pages