# Question 03 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.03 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Question 03 Chapter 6 of +2-A

03. R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retire from the business and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit sharing ratio.

## The solution of Question 03 Chapter 6 of +2-A: –

a

Old Ratio R ,S and M = 2 : 2 : 1
M retires from the firm.

 His profit share = 1 5

M’s share taken by R and S in ratio of 1 : 2

 Share taken by R = 1 X 1 5 3
 = 1 15

 Share taken by S = 1 X 2 5 3
 = 2 15

New Ratio = Old Ratio + Share acquired from M

 R’s New Share = 2 + 1 5 15
 = 6 + 1 15

 = 7 15

 S’s New Share = 2 + 2 5 15
 = 6 + 2 15
 = 8 15

∴ New Profit Ratio R and S = 7 : 8

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