Question 07 Chapter 5 of +2-A
Table of Contents
7. R and S are partners sharing profits in the ratio of 5 : 3. T joins the firm as a new partner. R gives 1/4th of his share and S gives 1/5th of his share to the new partner. Find out new profit sharing ratio.
The solution of Question 07 Chapter 6 of +2-A
| Old Ratio of R and S | = | 5 : 3 |
| R Sacrifice his share in the favour of D | = | 1/4th |
| S Sacrifice his share in the favour of D | = | 1/5th |
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
| R Sacrificing Share | = | 5 | X | 1 |
| 8 | 4 |
| = | 5 | |
|
| 32 |
| S Sacrificing Share | = | 3 | X | 1 |
| 8 | 5 |
| = | 3 | |
| 40 |
New Ratio of Old Partners = Old Ratio – Sacrificed Ratio
| R New Profit Share | = | 5 | – | 5 |
| 8 | 32 |
| = | 20 – 5 | |
| 32 |
| = | 15 | |
| 32 |
| Y New Profit Share | = | 3 | – | 3 |
| 8 | 40 |
| = | 15 – 3 | |
| 40 |
| = | 12 | |
| 40 |
| T’s Share | = | R’s Sacrificing | +S’s Sacrificing |
| T’s Share | = | 5 | + | 3 |
| 32 | 40 |
| = | 25 + 12 | |
| 160 |
| = | 37 | |
| 160 |
| New Profit sharing Ratio between All partners | = | 15 | : | 12 | : | 37 |
| 32 | 40 | 160 |
| = | 75 : 48 : 37 | |
| 160 | ||
| = | 75 : 48 : 37 |
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
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