Question 06 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 06 Chapter 6 of +2-A

Question 06 Chapter 6 of +2-A

06. a W, X, Y and Z are partners sharing profits and losses in the ratio of 1/3, 1/6, 1/3 and 1/6 respectively. Y retires and W, X and Z decide to share the profits and losses equally in future. Calculate gaining ratio.
b A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. C retires from the business. A is acquiring 4/9 of C’s share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.

 

The solution of Question 06 Chapter 6 of +2-A: –

a

Old Ratio A, B and C = 1 : 3 : 1 : 1
2 10 5 6

or 2 : 1 : 2 : 1
Gaining Ratio = New Ratio − Old Ratio

 

W’s Gain = 1 2
3 6
  = 2 – 2
6
  = 0
  6

 

X’s Gain = 1 1
3 6
  = 2 – 1
6
  = 1
  6

 

Z’s Gain = 1 1
3 6
  = 2 – 1
6
  = 1
  6

∴Gaining Ratio = 0 : 1 : 1

b

Old Ratio A, B and C = 4 : 3 : 2

C’s Profit Share = 2
9

A acquires 4/9 of C’s Share and remaining share is acquired by B

Share acquired by A = 2 X 4
9 9
  = 8
  81

Share acquired by B = C’s Share – Share acquired by A

  = 2 8
9 81
  = 18 – 8
81
  = 10
  81

New Profit Share = Old Profit Share + Share acquired from C

A’s new share = 4 + 8
9 81
  = 39 + 8
81
  = 44
  81

 

B’s new share = 3 + 10
9 81
  = 27 + 10
81
  = 37
  81

∴ New Profit Ratio A and B = 44 : 37

Gaining Ratio = New Ratio − Old Ratio

A’s new share = 44 4
81 9
  = 44 – 36
81
  = 8
  81

 

B’s new share = 37 3
81 9
  = 37 – 27
81
  = 10
  81

∴Gaining Ratio = 8 : 10 or 4 : 5

 

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 06 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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