Question 06 Chapter 5 of +2-A
6. X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted as partner with 1/4 share in profit. Z acquires his share from X and Y in the ratio of 2 : 1.
Calculate new profit-sharing ratio.
The solution of Question 06 Chapter 6 of +2-A
| Old Ratio of X and Y | = | 3 : 2 |
Z is admitted for 1/4th Share in Profits
sacrificing Ratio of X and Y is 2 : 1
In this case we have to calculate the sacrificing share of both partners with the following formula and then subtract this share from the profit share of old partners: –
Sacrificing Share of Old Partners = New Partner’s Share X Sacrificed Ratio
| X Sacrificing Share | = | 1 | X | 2 |
| 4 | 3 |
| = | 2 | |
|
| 12 |
| Y Sacrificing Share | = | 1 | X | 1 |
| 4 | 3 |
| = | 1 | |
| 12 |
New Ratio of Old Partners = Old Ratio – Sacrificed Ratio
| X New Profit Share | = | 3 | – | 2 |
| 5 | 12 |
| = | 36 – 10 | |
| 60 |
| = | 26 | |
| 60 |
| Y New Profit Share | = | 2 | – | 1 |
| 5 | 12 |
| = | 24 – 5 | |
| 60 |
| = | 19 | |
| 60 |
| Z’s Share | = | 1 | X | 15 |
| 4 | 15 |
| = | 15 | |
| 60 |
| New Profit sharing Ratio between All partners | = | 26 : 19 : 15 |
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. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
