Question 04 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 04 Chapter 5 of +2-A

Question 04 Chapter 5 of +2-A

4. A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D.

 

The solution of Question 04 Chapter 5 of +2-A

 

Old Ratio of A, B and C = 3 : 2 : 1    
D is admitted for 1/8th share of profit    

B Sacrifice his share in the favour of D = 1/6
C Sacrifice his share in the favour of D = 1/6
In this case we don’t need to calculate the remaining share because sacrificed share of old partners is already given in the question. So we can calculate the new Profit Sharing ratio with following formula
New Ratio of Old Partners = Old Ratio – Sacrificed Ratio

B New Profit Share = 2 1
6 16
  = 16 – 3
  48
  = 13  
  48

 

C New Profit Share = 1 1
6 16
  = 8 – 3
  48
  = 5
  48

 

A’s Share = 3 X 8
8
  = 24
  48

 

A’s Share = 1 X 6
6
  = 6
  48

 

New Profit sharing Ratio between All partners = 24 : 13 : 5 : 6

 

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 04 Chapter 5 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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