Double Entry Book Keeping Ts Grewal Volume I 2021-2022 Solutions for Class 12

Commerce Accountancy Chapter 5 - Admission Of A Partner

Page No 5.85:

Question 1:

Raj, Ram and Ramesh are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit Suresh into partnership and give him 1/5th share of profits. Find the new profit-sharing ratio.

Answer:

	Raj	Ram	Ramesh
OLD RATIO	5 :	3 :	2

Suresh is admitted for 1/5 share of profit

Let the combined share of profit for all partners after Suresh’s admission be = 1

Combined share of Raj, Ram and Ramesh after Suresh’s admission =1 − Suresh’s share

=1-1/5

=4/5

New Ratio = Old Ratio × Combined share of Raj, Ram and Ramesh

Raj = 5/10×4/5=20/50

Ram =3/10×4/5=12/50

Ramesh =2/10×4/5=8/50

	Raj		Ram		Ramesh		Suresh
New profit sharing ratio =	20/50	:	12/50	:	8/50	:	1/5
=	20	:	12	:	8	:	10
=	10	:	6	:	4	:	5

Page No 5.85:

Question 2:

Ravi and Mukesh are sharing profits in the ratio of 7 : 3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate new profit-sharing ratio.

Answer:

	X		Y
New profit sharing ratio=	20/50	:	12/50

Ashok admits for 3/7 share of profit

Ravi sacrifices in favour of Ashok =2/7

Mukesh sacrifices in favour of Ashok =1/7

New Ratio = Old Ratio − Sacrificing Ratio

Ravi = 7/10-2/7=29/70

Mukesh =3/10-1/7=11/70

	X		Y		Z
New profit sharing ratio=	29/70	:	11/70	:	3/7
=	29	:	11	:	3
=	29	:	11	:	30

Page No 5.85:

Question 3:

A and B are partners sharing profits and losses in the proportion of 7:5. They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He acquires this share as 1/24th from A and 1/8th from B. Calculate new profit-sharing ratio.

Answer:

	A	B
OLD RATIO	7 :	5 :

C admits for 1/6 share of profit

A sacrifices his share of profit in favour of C =1/24

B sacrifices his share of profit in favour of C =1/8

New Ratio = Old Ratio − Sacrificing Ratio

A’s 7/12-1/24=13/24

B’s 5/12-1/8=7/24

	A		B		C
New profit sharing ratio=	13/24	:	7/24	:	1/6
=	13	:	7	:	1
=	13	:	7	:	4

Page No 5.85:

Question 4:

A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D.

Answer:

A, B and C shares profits in the ratio of 3 : 2 : 1.

D’s share = 1/8 (D acquired 1/16 from B and C each)

A’s share =3/6 (retains original share)

B’s new share=2/6-1/16=13/48

C’s new share=1/6-1/16=5/48

New ratio of ABCD =3/6: 13/48: 5/48: 1/8 or 24:13:5:6

Page No 5.85:

Question 5:

Bharati and Astha were partners sharing profits in the ratio of 3 : 2. They admitted Dinkar as a new partner for 1/5th share in the future profits of the firm which he got equally from Bharati and Astha. Calculate the new profit-sharing ratio of Bharati, Astha and Dinkar.