Question 13 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 13 Chapter 5 of +2-A

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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