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**Question 09 Chapter 5 of +2-A**

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Find New Profit-sharing Ratio:

- 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.
- A and B are partners. They admit C for 1/4th share. In future, the ratio between A and B would be 2: 1.
- 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.
- 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.
- A and B are equal partners. They admit C and D as partners with 1/5th and 1/6th share respectively.
- 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 | = | 1/4^{th} |

T Sacrifice his share in the favour of S | = | 1/5^{th} |

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: –

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Sacrificing Share of Old Partners = New Partner’s Share X Sacrificed Ratio

R Sacrificing Share | = | 3 | X | 1 |

5 | 4 |

= | 3 | | |

20 |

T Sacrificing Share | = | 2 | – | 1 |

5 | 5 |

= | 2 | |

25 |

New Ratio of Old Partners = Old Ratio – Sacrificed Ratio

R New Profit Share | = | 3 | + | 3 |

5 | 20 |

= | 12 – 3 | |

20 |

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= | 9 | |

20 |

T New Profit Share | = | 2 | + | 2 |

5 | 25 |

= | 10 – 2 | |

25 |

= | 8 | |

25 |

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

T New Profit Share | = | 3 | + | 2 |

20 | 25 |

= | 15 + 8 | |

100 |

= | 23 | |

100 |

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

20 | 25 | 100 |

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= | 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 | = | 1 | – | 1 |

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 |

4 | 3 |

= | 6 | |

12 |

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B’s New Ratio | = | 3 | + | 1 |

4 | 3 |

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= | 3 | |

12 |

C’s New Ratio | = | 1 | + | 3 |

4 | 3 |

= | 3 | |

12 |

New Profit sharing Ratio between A, B and C | = | |

| = | 2: 1: 1 |

**Case III**

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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 | = | 1 | x | 1 |

5 | 5 |

= | 1 | |

25 |

B’s Sacrifice Share | = | 1 | X | 4 |

5 | 25 |

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= | 4 | |

25 |

New Ratio of Old Partners = Old Ratio – Sacrificed Ratio

A’s Sacrifice Share | = | 3 | – | 1 |

5 | 25 |

= | 15 – 1 | |

100 |

= | 14 | |

25 |

B New Profit Share | = | 2 | – | 4 |

5 | 25 |

= | 10 – 4 | |

25 |

= | 6 | |

25 |

C’s Share | = | 1 | x | 5 |

5 | 5 |

= | 5 | |

25 |

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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 | = | 1 | – | 1 | – | 1 |

6 | 6 |

= | 6 – 1 – 1 | |

6 |

= | 4 | |

6 |

**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

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X’s New Ratio | = | 4 | x | 3 |

6 | 5 |

= | 12 | |

30 |

Y’s New Ratio | = | 4 | x | 2 |

6 | 5 |

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= | 12 | |

30 |

Z’s New Ratio | = | 1 | x | 5 |

6 | 5 |

= | 5 | |

30 |

W’s New Ratio | = | 1 | x | 5 |

6 | 5 |

= | 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 | = | 1 | – | 1 | – | 1 |

5 | 6 |

= | 30 – 6 -5 | |

30 |

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= | 19 | |

30 |

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

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

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A’s New Ratio | = | 19 | x | 1 |

30 | 2 |

= | 19 | |

60 |

B’s New Ratio | = | 19 | x | 1 |

30 | 2 |

= | 19 | |

60 |

C’s New Ratio | = | 1 | x | 12 |

5 | 12 |

= | 12 | |

60 |

D’s New Ratio | = | 1 | x | 10 |

6 | 10 |

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= | 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 | = | 1 | – | 1 |

4 |

= | 4 – 1 | |

4 |

= | 3 | |

4 |

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

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

A’s New Ratio | = | 3 | x | 1 |

4 | 2 |

= | 3 | |

8 |

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B’s New Ratio | = | 3 | x | 1 |

4 | 2 |

= | 3 | |

8 |

C’s New Ratio | = | 1 | x | 2 |

4 | 2 |

= | 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)

**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)

**Cha****pter 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**

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