Question 10 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 10 Chapter 5 of +2-A

Question 10 Chapter 5 of +2-A

10. X and Y were partners sharing profits in the ratio of 3 : 2. They admitted P and Q as new partners. X surrendered 1/3rd of his share in favour of P and Y surrendered 1/4th of his share in favour of Q. Calculate new profit-sharing ratio of X, Y, P and Q.

 

The solution of Question 10 Chapter 6 of +2-A

 

Old Ratio of X and Y = 3 : 2     
X surrendered his share in the favour of P = 1/3th
Ysurrendered his share in the favour of Q = 1/4th

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

X Sacrificing Share = 3 1
5 3
  = 3  
  15

 

Y Sacrificing Share = 2 1
5 4
  = 2
  20

 

New Ratio of Old Partners = Old Ratio – Sacrificed Ratio

 

X’s New Profit Share = 3 3
5 15
  = 9 – 3
  15
  = 6
  15

 

Y New Profit Share = 2 2
5 20
  = 8 – 2
  20
  = 6
  20

 

P’s Share = X’s Sacrificing
  = 3
15

 

Q’s Share = Y’s Sacrificing
  = 2
20

 

New Profit sharing Ratio between All partners = 6 : 6 : 3 : 3
15 20 15 20
  = 24 : 18 : 12 : 6
  60
New Profit sharing Ratio between All partners = 24 : 18 : 12 : 6
  = 4 : 3 2 : 1



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 10 Chapter 5 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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