Page 88 - DEBKVOL-1

5.4 Double Entry Book Keeping—CBSE XII

Solved Questions

Illustration 1.
A and B were partners sharing profits in the ratio of 3 : 2. They admitted
C and D as new partners. A surrendered 1/3rd of his share in favour of C and B surrendered
1/4th of his share in favour of D. Calculate new profit-sharing ratio of A, B, C and D.
Solution:
A’s old share of profit = 3/5
A surrendered 1/3rd of his share in favour of C, i.e., 3/5 × 1/3 = 3/15 or 1/5
3 3 93- 6
A’s share of profit in the new firm = - = =
5 15 15 15
B surrendered 1/4th of his share in favour of D, i.e., 2/5 × 1/4 = 2/20 or 1/10
2 2 82- 6
B’s share of profit in the new firm = - = =
5 20 20 20
3
C’s share of profit in the new firm =
15
2
D’s share of profit in the new firm =
20
6 6 3 2
New Profit-sharing Ratio of A, B, C and D = : : :
15 20 15 20
= 24 : 18 : 12 : 6 or 4 : 3 : 2 : 1.
Illustration 2.
Determine new profit-sharing ratio:
(i) K, L and M are partners sharing profits and losses in the ratio of 3 : 2 : 1. They admit
N for 1/6th share. M would retain his original share.
(ii) A, B and C are partners sharing profits in the ratio of 3 : 2 : 5. They admit D and give
him 1/4th share. Share is contributed by them in the ratio of 1 : 1 : 3.
(iii) A and B are partners sharing profits in the ratio of 5 : 4. They admit C for 1/9th share,
which he acquires from A. (Delhi 2008 C)

Solution:
1 1 1 1 2
(i) Let the total share = 1; Share of M and N = + = ; Remaining share = 1 – = ◊
6 6 3 3 3
Shares of K and L are calculated by dividing the remaining share in their future profit-
sharing ratio (which in this case is the old ratio since nothing is given as to how N
gets his share from K and L) as under:
3 2 6 2 2 4
K’s New share = th of = . L’s New share = th of =
5 3 15 5 3 15
6 4 11 12 8 5 5
New Ratio of K, L, M and N = : : : or : : : = 12 : 8 : 5 : 5.
15 15 6 6 30 30 30 30
Note: M would retain his original share. He is not a sacrificing partner.