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Question 04 Chapter 4 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 04 Chapter 4 of +2-A
Question No.04 Chapter No.4 - T.S. Grewal +2 Book 2019-Solution

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Question 04 Chapter 4 of +2-A

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4. A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1.
Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:
Case 1. C acquires 1/5th share from A.
Case 2. C acquires 1/5th share equally form A and B.
Case 3. A, B and C will share future profits and losses equally.
Case 4. C acquires 1/10th share of A and 1/2 share of B.

The solution of Question 04 Chapter 4 of +2-A:

Case I C acquires 1/5th from A

Old Ratio of A,B, & C=5 : 4 : 1 

A sacrifice 1/5th share of Profit
C gain 1/5th share of Profit
Calculate the A, B, & C New Profit sharing ratio: –
Partner’s New Profit share = Old Ratio − or + Sacrifice/gain


A’s New Share=51
105
 =15 -2
 10
 =3 
 30
B’s New Share=4 No change
10
C’s New Share=11
105
 =6 – 2
 10
 =3 
 10

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New Profit Ratio of A,B, & C = 3 : 4 : 3

Case II C acquires 1/5th share equally from A and B.

Old Ratio of A,B, & C = 5 : 4 : 1
A sacrifice 1/10th share of Profit
A sacrifice 1/10th share of Profit
C gain 1/5th share of Profit
Calculate the A, B, & C New Profit sharing ratio: –
Partner’s New Profit share = Old Ratio − or + Sacrifice/gain

A’s New Share=51
1010
 =5 -1
 10
 =4
 10
B’s New Share=41
1010
 =4 -1
 10
 =3
 10
B’s New Share=1+1+1
101010
 =1+1+1
 10

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 =3
 10

New Profit Ratio of A,B, & C = 4 : 3 : 3

Case III A, B and C will share future profits and losses equally.

Old Ratio of A, B, & C = 5 : 4 : 1
New Ratio of A, B, & C = 1 : 1 : 1
Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio= Old Ratio – New Ratio

A’s New Share=51
103
 =15 -10
 30
 =5Sacrificing
 10
B’s Share Sacrificing/Gaining=41
103
 =12 -10
 30
 =2 Sacrificing
 10
B’s Share Sacrificing/Gaining=11
103
 =3-10
 30

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 =– 7 Gaining
 10

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Sacrificing Share of A=5
30
Sacrificing Share of B=2
30
Gaining Share of C=-7
30

Case IV C acquires 1/10th share of A and 1/2 share of B.

Old Ratio of A,B, & C= 5 : 4 : 1
A sacrifice 1/10th of his share
A sacrifice 1/2th of his share
Calculate the A, B, & C New Profit sharing ratio: –
Partner’s Sacrifice fixed portion of him share = Old Ratio X Sacrificed portion

A’s New Share=5X1
103
 =Sacrificing
 20
B’s Sacrifice to C=4X1
103
 =4Sacrificing
 20

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B’s Sacrifice to C=41
2020
 =1 + 4
 30
 =5Gaining
 20

Partner’s New Profit share = Old Ratio − or + Sacrifice/gain

A’s New Share=51
1020
 =10 – 4
 20
 =9
 20
B’s New Share=44
1020
 =8 – 4
 20
 =4
 20

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C’s New Share=1+1+4
102020
 =2 + 1 + 4
 20
 =7
 20

New Profit Ratio of A, B, & C = 9 : 4 : 7

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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Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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