Question 01 Chapter 4 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 01 Chapter 4 of +2-A

1. A and B are sharing profits and losses equally. With effect from 1st April, 2019, they agree to share profits in the ratio of 4 : 3. Calculate individual partner’s gain or sacrifice due to the change in ratio

The solution of Question 01 Chapter 4 of +2-A

:

 Old Ratio of A & B = 1 : 1 New Ratio of A & B = 4 : 1

Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old Ratio – New Ratio

 A’s Share Sacrificing/Gaining = 1 – 4 2 7
 = 7 – 8 14
 = (-)1 Gaining 14
 A’s Share Sacrificing/Gaining = 1 – 3 2 7
 = 7 – 6 14
 = 1 Sacrificing 14

 Sacrificing or Gaining Ratio = 1 : 1 14 14

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. 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