Q.No.18 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 18 Chapter 5 of +2-A

18. P and Q are partners sharing profits in the ratio of 3 : 2. They admit R into partnership who acquires 1/5th of his share from P and 4/25th share from Q. Calculate New Profit-sharing Ratio and Sacrificing Ratio.

 

The solution of Question 18 Chapter 6 of +2-A

 

Old Ratio of X and Y	=	3 : 2
R acquires 1/5th of his share from P
R acquires 4/25th share from Q

Note: - In the Question R acquires 1/5 of his from P but 4/25th share from Q So, here we have on ratio and another is value of share so first we to calculate the Ratio and Share acquires from both.

If 4/5th of R’s Share = 4/25th Acquires from Q

R’s Share	=	4	=	4
		5		25

A’s New Ratio	=	4	X	4
		5		25

=	1
		5

This is Ratio of share in which R will Acquired share from Q
Share Acquired by R from P = 1/5 X 1/5

Share Acquired by R from P	=	1	X	1
		5		5

=	1
		25

This is value of share which is acquired by R from P’s Share.

So, R acquired share from P and Q	=	1	:	4
		25		25
Sacrificing Ratio of P and Q	=	1	:	4

 

New Ratio of Old Partners = Old Ratio - Sacrificed Ratio

P’s New Profit Share	=	3	-	1
		5		25

=	15 - 1
	25

=	14
		25

 

Q’s New Profit Share	=	2	X	4
		5		52

=	10 - 4
	25

=	6
		25

 

		P’s Sacrificing		Q’s Sacrificing
R’s Share	=	1	X	4
		25		25

=	5
		25

New profit Share ratio after D admission

New Profit sharing Ratio between All partners	=	14	:	6	:	5
		25		25		25

=	14 : 6 : 5

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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