Question 16 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 16 Chapter 5 of +2-A

Question 16 Chapter 5 of +2-A

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)

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 16 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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