Question 02 Chapter 6 of +2-A
02. From the following particulars, calculate new profit-sharing ratio of the partners: a Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5 : 5 : 4. Mohan retired and his share was divided equally between Shiv and Hari. b P, Q and R were partners sharing profits in the ratio of 5 : 4 : 1. P retires from the firm.
The solution of Question 02 Chapter 6 of +2-A: –
a
Old Ratio Shiv, Mohan and Hari = 5 : 5 : 4
| Mohan’s Profit Share | = | 5 |
| 14 |
His share is divided between Shiv and Hari equally i.e. in the ratio of 1: 1
| Share of Mohan taken by Shiv | = | 5 | X | 1 |
| 14 | 2 |
| = | 5 | |
| 28 |
| Share of Mohan taken by Hari | = | 5 | X | 1 |
| 14 | 2 |
| = | 5 | |
| 28 |
New Profit Share = Old Profit Share + Share taken from Mohan
| Shiv’s New Share | = | 5 | + | 5 |
| 14 | 28 |
| = | 10 + 5 | |
| 28 |
| = | 15 | |
| 28 |
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| Hari’s New Share | = | 4 | + | 5 |
| 14 | 28 |
| = | 8 + 5 | |
| 28 |
| = | 13 | |
| 28 |
∴ New Profit Ratio Shiv and Hari = 15 : 13
b
Old Ratio P, Q and R = 5 : 4 : 1
| P’s Profit Share | = | 5 |
| 10 |
As we can see, no information is given as to how Q and R are acquiring P’s profit share after his retirement, so the new profit sharing ratio between Q and R is calculated just by crossing out the P’s share. That is, the new ratio becomes 4 : 1
∴New Profit Ratio Q and R = 4 : 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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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