Question 02 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 02 Chapter 6 of +2-A

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

 

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)

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

2 Book 1 min - Question 02 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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