Q.No.7 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 07 Chapter 5 of +2-A

7. R and S are partners sharing profits in the ratio of 5 : 3. T joins the firm as a new partner. R gives 1/4th of his share and S gives 1/5th of his share to the new partner. Find out new profit sharing ratio.

 

The solution of Question 07 Chapter 5 of +2-A

 

Old Ratio of R and S	=	5 : 3
R Sacrifice his share in the favour of T	=	1/4th
S Sacrifice his share in the favour of T	=	1/5th

In this case we have to calculate the sacrificing share of both partners with the following formula and then subtract this share from the profit share of old partners: -

Sacrificing Share of Old Partners = New Partner’s Share X Sacrificed Ratio

R Sacrificing Share	=	5	X	1
		8		4

=	5
		32

 

S Sacrificing Share	=	3	X	1
		8		5

=	3
		40

New Ratio of Old Partners = Old Ratio - Sacrificed Ratio

R New Profit Share	=	5	-	5
		8		32

=	20 - 5
		32

=	15
		32

 

Y New Profit Share	=	3	-	3
		8		40

=	15 - 3
		40

=	12
		40

T’s Share

=

R’s Sacrificing

+S’s Sacrificing

T’s Share	=	5	+	3
		32		40

=	25 + 12
		160

=	37
		160

 

New Profit sharing Ratio between All partners	=	15	:	12	:	37
		32		40		160

=	75 : 48 : 37
		160
=	75 : 48 : 37

 

 

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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