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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question 12 Chapter 6 of +2-A
12. A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. B decides to retire from the firm. Calculate new profit-sharing ratio of A and C in the following circumstances:
a If B gives his share to A and C in the original ratio of A and C.
b If B gives his share to A and C in equal proportion.
c If B gives his share to A and C in the ratio of 3 : 1.
d If B gives his share to A only.
Old Ratio A, B and C = 4 : 3 : 2
B retires from the firm.
| His profit share | = | 3 |
| 9 |
Case a B gives his share to A and C in their original ratio.
Original Share A and C = 4 : 2
| Share taken by A | = | 3 | X | 4 |
| 9 | 6 |
| = | 12 |
| 54 |
| Share taken by C | = | 3 | X | 2 |
| 9 | 6 |
| = | 6 |
| 54 |
New Ratio = Old Ratio + Share acquired from B
| A's New Share | = | 4 | + | 12 |
| 9 | 54 |
| = | 24 + 12 |
| 54 |
| = | 36 |
| 54 |
| C's New Share | = | 2 | + | 6 |
| 9 | 54 |
| = | 12 + 6 |
| 54 |
| = | 18 |
| 54 |
∴ New Profit Ratio A and C = 36 : 18 or 2 : 1
Case b B gives his share to A and C in equal proportion
| Share taken by A | = | 3 | X | 1 |
| 9 | 2 |
| = | 3 |
| 18 |
| Share taken by C | = | 3 | X | 1 |
| 9 | 2 |
| = | 3 |
| 18 |
New Ratio = Old Ratio + Share acquired from B
| A's New Share | = | 4 | + | 3 |
| 9 | 18 |
| = | 8 + 3 |
| 18 |
| = | 11 |
| 18 |
| C’s New Share | = | 2 | + | 3 |
| 9 | 18 |
| = | 4 + 3 |
| 18 |
| = | 7 |
| 18 |
∴ New Profit Ratio A and C = 11 : 7
Case c B gives his to A and C in the ratio 3 : 1.
| Share taken by A | = | 3 | X | 3 |
| 9 | 4 |
| = | 9 |
| 36 |
| Share taken by C | = | 3 | X | 1 |
| 9 | 4 |
| = | 3 |
| 36 |
New Ratio = Old Ratio + Share acquired from B
| A's New Share | = | 4 | + | 9 |
| 9 | 36 |
| = | 16 + 9 |
| 36 |
| = | 25 |
| 36 |
| C’s New Share | = | 2 | + | 3 |
| 9 | 36 |
| = | 8 + 3 |
| 36 |
| = | 11 |
| 36 |
∴ New Profit Ratio A and C = 25 : 11
Case d B gives his share to A only
| A’s New Share = A’s Old Share + Share of B | = | 4 | + | 3 |
| 9 | 9 |
| = | 7 |
| 9 |
| C’s Share | = | 2 |
| 9 |
∴ New Profit Ratio A and C = 7 : 2
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Q.No.12 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1.
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