John wants to retire from the firm. The profit on revaluation on that date is Rs.15, 000. Mohan and Abdul want to share this in their new profit sharing ratio, 3:2. John wants this share equally. How is this profit to be shared?
Dear Student
Every time in case of Re-Constitution of Firm , Profit or loss on revaluation is distributed between Old partners in their old ratio only.
They can not distribute as per their wish.
Therefore on Retirement of John also Profit of Rs 15,000 shall be share in Old PSR between all Old partners . Assuming Old Ratio is Equal , Profit of Rs 15,000 shall be share equally between John, mohan and Abdul.
Regards
Every time in case of Re-Constitution of Firm , Profit or loss on revaluation is distributed between Old partners in their old ratio only.
They can not distribute as per their wish.
Therefore on Retirement of John also Profit of Rs 15,000 shall be share in Old PSR between all Old partners . Assuming Old Ratio is Equal , Profit of Rs 15,000 shall be share equally between John, mohan and Abdul.
Regards