Question 17 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 17 Chapter 5 of +2-A

Question 17 Chapter 5 of +2-A

17. A and B are in partnership sharing profits and losses as 3 : 2. C is admitted for 1/4th share. Afterwards D enters for 20 paise in the rupee. Compute profit-sharing ratio of A, B, C and D after D’s admission

 

The solution of Question 17 Chapter 6 of +2-A

 

Old Ratio of A and B = 3 : 2

 

C’s admitted for 1/4 share of profit
Let the combined share of profit of all partners be = 1
Combined share of A and B after C’s admission = 1 − C’s share


Remaining share = 1 1
4
  = 4 – 1
4
  = 3
  4


New Ratio = Old Ratio × Combined share of A and B

A’s New Ratio = 3 X 3
5 4
  = 9  
  20

 

B’s New Ratio = 2 X 3
5 4
  = 6
  20

New profit Share ratio after C admission

A : B : C = 9 : 6 : 1
20 20 4
  = 9 : 6 : 4
20
  = 9 : 6 : 4

 

Profit sharing ratio after C’s admission will become old ratio to determine the ratio after D’s admission

Old Ratio of A , B and C = 9 : 6 : 5

D’s admitted for 20/100 share of profit

Let the combined share of profit of all partners be = 1
Combined share of A and B after C’s admission = 1 − D’s share

Remaining share = 1 20
100
  = 100 -20
100
  = 80
  100

 

New Ratio = Old Ratio × Combined share of A, B, and C

A’s New Ratio = 9 X 80
20 100
  = 72
  200

 

B’s New Ratio = 6 X 80
20 100
  = 48
  200

 

C’s New Ratio = 5 X 80
20 100
  = 40
  200

New profit Share ratio after D admission

A : B : C = 72 : 48 : 40 : 20
200 200 200 100
  = 72 : 48 : 40 40
200
  = 72 : 48 : 40 : 40



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 17 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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