Q.No.3 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 03 Chapter 6 of +2-A

03. R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retire from the business and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit sharing ratio.

 

The solution of Question 03 Chapter 6 of +2-A: -

a

Old Ratio R ,S and M = 2 : 2 : 1
M retires from the firm.

His profit share	=	1
		5

M’s share taken by R and S in ratio of 1 : 2

Share taken by R	=	1	X	1
		5		3

=	1
		15

 

Share taken by S	=	1	X	2
		5		3

=	2
		15

 

New Ratio = Old Ratio + Share acquired from M

R's New Share	=	2	+	1
		5		15

=	6 + 1
	15

=	7
		15

 

S's New Share	=	2	+	2
		5		15

=	6 + 2
	15

=	8
		15

∴ New Profit Ratio R and S = 7 : 8

 

 

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

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