Question 14 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 14 Chapter 5 of +2-A

Question 14 Chapter 5 of +2-A

14.A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20 respectively. E joins the partnership for 20% share and A, B, C and D in future would share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. Calculate new profit-sharing ratio after E’s admission .

 

The solution of Question 14 Chapter 6 of +2-A

 

Old Ratio of A, B, C and D = 36 : 24 : 20 : 20
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 20
100
  = 100 – 20
100
  = 80
  100


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 = 80 X 3
100 10
  = 24  
  27

 

B’s New Ratio = 80 X 4
100 10
  = 32
  100

 

C’s New Ratio = 80 X 2
100 10
  = 16
  100

 

D’s New Ratio = 80 X 1
100 10 
  = 8
  100

 

New Profit sharing Ratio between A, B, C, and D
= 24 : 32 : 16 : 8 :20
  = 6 : 8 : 4 : 2 : 5

 

 

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

2 Book 1 min - Question 14 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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