A. 3 : 2
B. 2 : 3
C. $$\frac{1}{2}:\,\frac{1}{3}$$
D. 1 : 1
Answer: Option A
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Gaining Ratio = New Ratio − Old Ratio
Step 1: Find the old profit-sharing ratio
A : B : C = 12 : 13 : 16
Total = 12 + 13 + 16 = 41
So,
A's old share = 12/41
B's old share = 13/41
C's old share = 16/41
Step 2: Determine the new ratio
Since no new ratio is given, we assume A and B continue in their old ratio (12:13).
Thus,
A's new share = 12/25
B's new share = 13/25
Step 3: Calculate gain of each partner
A's gain:
12/25 - 12/41 = 192/1025 =12
13/25 - 13/41 = 208/1025 =13