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

Question 13 Chapter 5 of +2-A

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)

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 13 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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