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 |
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 |
| B’s New Ratio |
= |
2 |
X |
3 |
| 3 |
9 |
| C’s New Ratio |
= |
2 |
X |
2 |
| 3 |
9 |
| D’s New Ratio |
= |
1 |
X |
9 |
| 3 |
9 |
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 |
| B’s Sacrificing Share |
= |
3 |
– |
6 |
| 9 |
27 |
| A’s Sacrificing Share |
= |
2 |
– |
4 |
| 9 |
27 |
Sacrificing Share
|
= |
4 : 3 : 2 |
The Content covered in this article:
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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms
