Question 01 Chapter 5 of +2-A - T.S. Grewal 12 Class Part

Question 01 Chapter 5 of +2-A

Table of Contents

The solution of Question 01 Chapter 5 of +2-A

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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

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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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