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

Question 03 Chapter 6 of +2-A

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)

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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2 Book 1 min - Question 03 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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