Q.No.16 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 16 Chapter 5 of +2-A

16. A, B and C are partners sharing profits in the ratio of 2 : 2 : 1. D is admitted as a new partner for 1/6th share. C will retain his original share. Calculate the new profit-sharing ratio and sacrificing ratio

 

The solution of Question 16 Chapter 6 of +2-A

 

Old Ratio of A ,B and C

=

2 : 2 : 1

D is admitted for 1/6th share while C will continue to retain his original share 1/5

Remaining share	=	1	-	20	-	1
				100		5

=	30 - 5 - 6
	30

=	19
		30

The remain Share will be shared by A and B in the ratio of 2: 2 (old Ratio)

A’s New Ratio	=	19	X	2
		30		4

=	38
		120

 

B’s New Ratio	=	19	X	2
		30		4

=	38
		120

 

C’s New Ratio	=	1	X	24
		5		24

=	24
		120

 

D’s New Ratio	=	1	X	20
		6		20

=	2
		120

 

New Profit sharing Ratio between A, B, C, and D	=	38 : 38 : 24 : 20
	=	19 : 19 : 20 : 12

*Since nothing is mentioned about the sacrifice made by the existing partners, it is assumed that A and B sacrifice in their old ratio.

Calculation of Sacrificing Ratio

Sacrificing Share = Old Ratio - New Ratio

A’s Sacrificing Ratio	=	2	X	19
		5		60

=	24 - 19
	60

=	5
		60

 

B’s Sacrificing Ratio	=	2	X	19
		5		60

=	24 - 19
	60

=	5
		60

Sacrificing Ratio A, B, C, and D	=	5 : 5
	=	1 : 1

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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