Double
Entry Book Keeping Ts Grewal Volume-1 2022-23 Solutions
Class
12 Commerce Accountancy
Chapter
4 - Change In Profit Sharing Ratio Among The Existing Partners
Question
1:
Om and Shyam
are sharing profits and losses equally. With effect from 1st April, 2022, they
agree to share profits in the ratio of 4 : 3. Calculate individual partner's
gain or sacrifice due to the change in ratio.
Answer:
Old Ratio (Om and Shyam) = 1 : 1
New Ratio (Om and Shyam) = 4 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Om’s share = ½ - 4/7 = 7-8/14= -1/14 (Gain)
Shyam’s share = ½ - 3/7 = 7-6/14= 1/14 (sacrifice)
∴ Om’s Gain = 1/14
Shyam’s Sacrifice = 1/14
Question
2:
Ashok, Bhim
and Chetan are sharing profits and losses in the ratio of 5 : 3 : 2. With
effect from 1st April, 2022, they decide to share profits and losses in the
ratio of 5 : 2 : 3. Calculate each partner's gain or sacrifice due to the
change in ratio.
Answer:
Old Ratio (Ashok, Bhim and Chetan) = 5 : 3 : 2
New Ratio (Ashok, Bhim and Chetan) = 5 : 2 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Ashok’s share =5/10 – 5/10 = nil
Bhim’s share =3/10 – 2/10 = 1/10 (sacrifice)
Chetan’s share =2/10 – 3/10 = -1/10 (Gain)
∴ Chetan’s Gain = 1/10
Bhim’s Sacrifice = 1/10
Question
3:
X, Y and Z
are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st
April, 2022, they decide to share profits and losses equally. Calculate each
partner's gain or sacrifice due to the change in ratio.
Answer:
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or
Gaining) Ratio = Old Ratio − New Ratio
X’s share =5/10 – 1/3 = 15-10/30= 5/30
Y’s share =3/10 – 1/3 = 9-10/30= -1/30
Z’s share =2/10 – 1/3 = 6-10/30= -4/30
∴ Y’s Gain = 1/30
Z’s Gain = 4/30
X’s Sacrifice = 5/30
Question 4:
A, B and C
are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate
new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the
following cases:
Case 1. C acquires 1/5th share from A.
Case 2. C acquires 1/5th share equally form A
and B.
Case 3. A, B and C will share
future profits and losses equally.
Case 4. C acquires 1/10th share of A and 1/2
share of B.
Answer:
Calculation of New Profit Sharing Ratio
Case 1:
A:B:C=5:4:1(Old Ratio)
C acquires 15th from A
A's sacrifice = 1/5
C's gain = 1/5
A=5/10−1/5= 5−2/10=3/10
B=4/10
C=1/10+1/5=1+2/10 =3/10
A:B:C=3:4:3
Case 2:
A:B:C=5:4:1(Old Ratio)
C acquires 1/5th share equally from A and
B=1/5×1/2=1/10
A's sacrifice = 110
B's sacrifice = 1/10
C's gain = 1/5
A=5/10−1/10
=5−1/10=4/10
B=4/10−1/10=4−1/10=3/10
C=1/10+1/5=1+2/10=3/10
A:B:C=4:3:3
Case 3:
A:B:C=5:4:1(Old Ratio)
A:B:C=1:1:1(New Ratio)
A=5/10−1/3=15−10/30=5/30(Sacrifice)
B=4/10−1/3=12−10/30=2/30(Sacrifice)
C=1/10−1/3=3−10/30=−7/30(Gain)
Case 4:
A:B:C=5:4:1(Old Ratio)
A's sacrifice to C=5/10×1/10=1/20
B's sacrifice to C=4/10×1/2=4/20
C's gain=1/20+4/20=5/20
A=5/10−1/20
=10−1/20=9/20
B=4/10−4/20=8−4/20=4/20
C=1/10+5/20=2+5/20=7/20
A:B:C=9:4:7
Question
5:
Asha, Nisha
and Disha shared profits and losses in the ratio of 3 : 2 : 1
respectively. With effect from 1st April, 2022, they agreed to share profits
equally. The goodwill of the firm was valued at ` 18,000. Pass necessary Journal entries when:
Answer:
Calculation of Gain/Sacrifice made by the partners:
|
Particulars |
Asha |
Nisha |
Disha |
|
Old Ratio |
3/6 |
2/6 |
1/6 |
|
New Ratio |
1/3 |
1/3 |
1/3 |
|
Gain/Sacrifice |
1/6 (Sacrifice) |
Nil |
-1/6 (Gain) |
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit |
Credit |
|
|
2022 April 1 |
Disha’s Capital A/c (18,000×1/6) |
Dr. |
|
3,000 |
|
|
|
To Asha’s Capital A/c (18,000×1/6) |
|
|
3,000 |
|
|
|
(Being Adjustment for goodwill) |
|
|
|
|
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