Advertisement

Question 09 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 09 Chapter 5 of +2-A
Question No.09 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Advertisement

Question 09 Chapter 5 of +2-A

Advertisement

Find New Profit-sharing Ratio:

  1. R and T are partners in a firm sharing profits in the ratio of 3: 2. S joins the firm. R surrenders 1/4th of his share and T 1/5th of his share in favour of S.
  2. A and B are partners. They admit C for 1/4th share. In future, the ratio between A and B would be 2: 1.
  3. A and B are partners sharing profits and losses in the ratio of 3: 2. They admit C for 1/5th share in the profit. C acquires 1/5th of his share from A and 4/5th share from B.
  4. X, Y and Z are partners in the ratio of 3: 2: 1. W joins the firm as a new partner for 1/6th share in profits. Z would retain his original share.
  5. A and B are equal partners. They admit C and D as partners with 1/5th and 1/6th share respectively.
  6. A and B are partners sharing profits/losses in the ratio of 3: 2. C is admitted for 1/4th share. A and B decide to share equally in future.

The solution of Question 09 Chapter 5 of +2-A

Case I

Old Ratio of R and T=3: 2     
R Sacrifice his share in the favour of S=1/4th
T Sacrifice his share in the favour of S=1/5th

Advertisement-X

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=3X1
54
 =3 
 20

 

T Sacrificing Share=21
55
 =2
 25

New Ratio of Old Partners = Old Ratio – Sacrificed Ratio

R New Profit Share=3+3
520
 =12 – 3
 20

Advertisement-Y

 =9
 20

 

T New Profit Share=2+2
525
 =10 – 2
 25
 =8
 25

S’s Share = R’s Sacrificing + T’s Sacrificing

T New Profit Share=3+2
2025
 =15 + 8
 100
 =23
 100

Advertisement-X

 

New Profit sharing Ratio between All partners=9:8:23
2025100

Advertisement-Y

 =45: 32: 23
 100
 =45: 32: 23

Case II

Old Ratio of A and B=2: 1     
C is admitted for 1/4th share of profit  

Let the total share of the business = 1
The remaining share of A and B after C’s Admission = Total Share – C’s Share

T New Profit Share=11
4
 =4 – 1
 4
 =3
 4

To Calculate to New Ratio distribute the remaining share in the old ratio of old partners’

New Ratio = Combined share of A and B X Old Ratio


A’s New Ratio=3+2
43
 =6
 12

 

Advertisement-X

 

B’s New Ratio=3+1
43

Advertisement-Y

 =3
 12

 

 

C’s New Ratio=1+3
43
 =3
 12

 

New Profit sharing Ratio between A, B and C=6 : 3 : 3
 =2: 1: 1

 

 

Advertisement-X

Case III

Old Ratio of A and B=3: 2     
C admits for 1/5th share of profit  
C acquires 1/5th of his share from A  
C acquires 4/5th of his share from B  

Sacrificing Share of Old Partners = C’s Share x Sacrificed Ratio

A’s Sacrifice Share=1x1
55
 =1
 25
B’s Sacrifice Share=1X4
525

Advertisement-Y

 =4
 25

New Ratio of Old Partners = Old Ratio – Sacrificed Ratio

A’s Sacrifice Share=31
525
 =15 – 1
 100
 =14
 25
B New Profit Share=24
525
 =10 – 4
 25
 =6
 25
C’s Share=1x5
55
 =5
 25

Advertisement-Y

New Profit sharing Ratio between All partners
=14: 6: 5

Case IV

Old Ratio of X, Y and Z=3: 2: 1     
W is admitted for 1/6th share of profit  

Z would retain his original share. So we have to subtract z share also from total

Let the total share of the business = 1
The remaining share of X and Y = Total Share – W’s Share – Z’s Share

Remaining share=111
66
 = 6 – 1 – 1
 6
 =4
 6

Advertisement-X

To Calculate to New Ratio distribute the remaining share in the old ratio of old partners’
New Ratio = Remaining share for X and Z X Old Ratio

 

X’s New Ratio=4x3
65
 =12
 30
Y’s New Ratio=4x2
65

Advertisement-Y

 =12
 30
Z’s New Ratio=1x5
65
 =5
 30
W’s New Ratio=1x5
65
 =5
 30
New Profit sharing Ratio between All partners
=12: 8: 5: 5

Case V

Old Ratio of A and B=1: 1     
C is admitted for 1/5th share of profit  
D is admitted for 1/6th share of profit  

Let the total share of the business = 1
The remaining share of A and B = Total Share – C’s Share – D’s Share

 

Remaining share=111
56
 =30 – 6 -5
 30

Advertisement-Y

 =19
 30

To Calculate to New Ratio distribute the remaining share in the old ratio of old partners’

Advertisement-X

New Ratio = Remaining share for A and B X Old Ratio

 

A’s New Ratio=19x1
302
 =19
 60
B’s New Ratio=19x1
302
 =19
 60
C’s New Ratio=1x12
512
 =12
 60
D’s New Ratio=1x10
610

Advertisement-Y

 =10
 60
New Profit sharing Ratio between All partners
=19: 19: 12: 10

Case VI

 

Old Ratio of A and B=3: 2     
C is admitted for 1/4th share of profit  

Let the total share of the business = 1
The remaining share of A and B after C’s Admission = Total Share – C’s Share

 

Remaining share=11
4
 =4 – 1
 4
 =3
 4

Advertisement-X

To Calculate to New Ratio distribute the remaining share in the Equal ratio of old partners’ because they decide to share future profit equal.

New Ratio = Combined share of A and B X Old Ratio

 

A’s New Ratio=3x1
42
 =3
 8

Advertisement-Y

B’s New Ratio=3x1
42
 =3
 8
C’s New Ratio=1x2
42
 =2
 8
New Profit sharing Ratio between All partners
=3: 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)

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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

 

Advertisement

Advertisement

error: Content is protected !!