Question 16 Chapter 5 of +2-A
Table of Contents
16. A, B and C are partners sharing profits in the ratio of 2 : 2 : 1. D is admitted as a new partner for 1/6th share. C will retain his original share. Calculate the new profit-sharing ratio and sacrificing ratio
The solution of Question 16 Chapter 6 of +2-A
| Old Ratio of A ,B and C | = | 2 : 2 : 1 |
D is admitted for 1/6th share while C will continue to retain his original share 1/5
| Remaining share | = | 1 | – | 20 | – | 1 |
| 100 | 5 |
| = | 30 – 5 – 6 | |
| 30 |
| = | 19 | |
| 30 |
The remain Share will be shared by A and B in the ratio of 2: 2 (old Ratio)
| A’s New Ratio | = | 19 | X | 2 |
| 30 | 4 |
| = | 38 | |
|
| 120 |
| B’s New Ratio | = | 19 | X | 2 |
| 30 | 4 |
| = | 38 | |
| 120 |
| C’s New Ratio | = | 1 | X | 24 |
| 5 | 24 |
| = | 24 | |
| 120 |
| D’s New Ratio | = | 1 | X | 20 |
| 6 | 20 |
| = | 2 | |
| 120 |
| New Profit sharing Ratio between A, B, C, and D |
= | 38 : 38 : 24 : 20 |
| = | 19 : 19 : 20 : 12 |
*Since nothing is mentioned about the sacrifice made by the existing partners, it is assumed that A and B sacrifice in their old ratio.
Calculation of Sacrificing Ratio
Sacrificing Share = Old Ratio – New Ratio
| A’s Sacrificing Ratio | = | 2 | X | 19 |
| 5 | 60 |
| = | 24 – 19 | |
| 60 |
| = | 5 | |
| 60 |
| B’s Sacrificing Ratio | = | 2 | X | 19 |
| 5 | 60 |
| = | 24 – 19 | |
| 60 |
| = | 5 | |
| 60 |
| Sacrificing Ratio A, B, C, and D |
= | 5 : 5 |
| = | 1 : 1 |
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
