Question 2 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 2 Chapter 5 – Unimax Class 12 Part 1

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The solution of Question 2 Chapter 5 – Unimax Class 12 Part 1

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

2. A and B are partners sharing profits and losses in ratio 5 : 3. They admit C for 1/6th Share and agree to share between them in the ratio of 2 : 1 in future. Calculate new profit sharing ratio and sacrifice ratio.

The solution of Question 2 Chapter 5 – Unimax Class 12 Part 1

Let total profit = 1
C’s Share =1/6
Remaining Profit = 1 -1/6 =6-1/ =5/6
A’s new share =5/6 X 2/3 =10/18
B’s new share =5/6 X 1/3 =5/18
New profit sharing ratio = A : B : C
=10/18: 5/18: 1/6
= 10 : 5 : 3 Ans.
Calculation of Sacrificing Ratio = Old Share – New share
A’s Sacrifice =5/8_10/18
=45-40/72 =5/75
B’s Sacrifice =3/8_5/18
=27-20/75 =7/75
Sacrificing Ratio = A : B
=5/75: 7/75
= 5 : 7 Ans.