Question 13 Chapter 5 of +2-A
Table of Contents
13. A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. D is admitted for 1/3rd share in future profits. What is the sacrificing ratio?
The solution of Question 13 Chapter 6 of +2-A
| Old Ratio of A, B and C | = | 4 : 3 : 2 |
| A is admitted for 1/3rd share of profit |
Let the total share of the business = 1
Remaining share of A, B and C = Total Share – D’s Share
| Remaining share | = | 1 | – | 1 |
| 3 |
| = | 3 – 1 | |
| 3 |
| = | 2 | |
| 3 |
To Calculate to New Ratio distribute the remaining share in the old ratio of old partners’
New Ratio = Combined share of A, B and C X Old Ratio
| A’s New Ratio | = | 2 | X | 4 |
| 3 | 9 |
| = | 8 | |
|
| 27 |
| B’s New Ratio | = | 2 | X | 3 |
| 3 | 9 |
| = | 6 | |
| 27 |
| C’s New Ratio | = | 2 | X | 2 |
| 3 | 9 |
| = | 4 | |
| 27 |
| D’s New Ratio | = | 1 | X | 9 |
| 3 | 9 |
| = | 9 | |
| 27 |
| New Profit sharing Ratio between A, B, C, and D |
= | 8 : 6 : 4 : 9 |
Calculation of Sacrificing Ratio
| Old Ratio of A, B and C | = | 4 : 3 : 2 |
| New Ratio of A, B, and C | = | 8 : 6 : 4 : 9 |
Sacrificing Share = Old Ratio – New Ratio
| A’s Sacrificing Share | = | 4 | – | 8 |
| 9 | 27 |
| = | 12 – 8 | |
| 27 |
| = | 4 | |
| 27 |
| B’s Sacrificing Share | = | 3 | – | 6 |
| 9 | 27 |
| = | 9 – 6 | |
| 27 |
| = | 3 | |
| 27 |
| A’s Sacrificing Share | = | 2 | – | 4 |
| 9 | 27 |
| = | 6 – 4 | |
| 27 |
| = | 2 | |
| 27 |
| Sacrificing Share |
= | 4 : 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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