Question 08 Chapter 5 of +2-A
Table of Contents
8. Kabir and Farid are partners in a firm sharing profits and losses in the ratio of 7 : 3. Kabir surrenders 2/10th from his share and Farid surrenders 1/10th from his share in favour of Jyoti; the new partner. Calculate new profit-sharing ratio and sacrificing ratio.
The solution of Question 08 Chapter 6 of +2-A
| Old Ratio of R and S | = | 7 : 3 |
| Kabir Sacrifice from his share in the favour of Jyoti | = | 2/10th |
| Farid Sacrifice from his share in the favour of Jyoti | = | 1/10th |
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
| Kabir New Share | = | 7 | – | 2 |
| 10 | 10 |
| = | 5 | |
|
| 10 |
| Farid New Share | = | 3 | – | 1 |
| 10 | 10 |
| = | 2 | |
| 10 |
| Jyoti’s Share | = | 2 | + | 1 |
| 10 | 10 |
| = | 2 + 1 | |
| 10 |
| = | 3 | |
| 10 |
| New Profit sharing Ratio between All partners | = | 5 : 3 : 2 |
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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