Question 01 Chapter 5 of +2-A
Table of Contents
1. X,Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit A into partnership and give him 1/5th share of profits. Find the new profit-sharing ratio.
The solution of Question 01 Chapter 5 of +2-A
| Old Ratio of X, & Y | = | 5 : 3 : 3 |
| A is admitted for 1/5 share of profit |
Let the total share of the business = 1
Remaining share of X,Y & Z after A’s Admission = Total Share – A’s Share
| Remaining share | = | 1 | – | 1 |
| 4 |
| = | 5 – 1 | |
| 5 |
| = | 4 | |
|
| 5 |
To Calculate to New Ratio distribute the remaining share in the old ratio of old partners’
New Ratio = Combined share of X, Y and Z X Old Ratio
| X’s New Ratio | = | 4 | X- | 5 |
| 5 | 10 |
| = | 20 | ||
| 50 |
| Y’s New Ratio | = | 4 | X | 3 |
| 5 | 10 |
| = | 12 | ||
| 50 |
| Z’s New Ratio | = | 5 | X | 2 |
| 10 | 10 |
| = | 8 | ||
| 50 |
| A’s New Ratio | = | 1 | X | 10 |
| 5 | 10 |
| = | 10 | |
| 50 |
| New Profit sharing Ratio between X, Y, Z, and A | = | 20 : 12 : 8 : 10 |
| = | 10: 6 : 4 : 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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