12th | Admission of a Partner | Question No.  16 To 20 | Ts Grewal Solution 2022-2023

Gautam and Yashica are partners sharing profits and losses in the ratio of 3 : 2. They admit Asma into partnership. Gautam gives 1/3rd of his share while Yashica gives 1/10th from his share to Asma. Calculate new profit-sharing ratio and sacrificing ratio.

Old Ratio of Gautam and Yashica is 3 : 2.

Gautam 's sacrifice=1/3×3/5=3/15

Yashica 's sacrifice=1/10

Sacrificing Ratio=3/15:1/10 or  2 :1

New Ratio = Old Share − Share Sacrificed

Gautam 's new share=3/5-3/15=6/15

Yashica 's new share=2/5-1/10=3/10

Asma's share=3/15+1/10=9 30

New Ratio=6/15 : 3/10 : 9/30 = 4 :3 : 3

 

A, B and C are partners sharing profits in the ratio of 2 : 2 : 1. D is admitted as a new partner for 1/6th share. C will retain his original share. Calculate the new profit-sharing ratio and sacrificing ratio. 

Calculation of New Profit Sharing Ratio

Old Ratio of A, B and C  is 2 : 2 : 1

. D is admitted for 1/6th share while . C will retain his 1/5 original share

Remaining  share=1-1/6-1/5

=30-5-6/30=19/30

Remaining  share will be shared by A and B in 2:2  (old).

	A’s			=19/30×2/4
				=38/120
	B’s			=19/30×2/4
				=38/120
	C’s			=1/5×24/24
				=24/120
	D’s			=1/6×20/20
				=20/120
A			B			C		D
38		:	38		:	24	:	20
19		:	19		:	12	:	10

*Since nothing is mentioned about the sacrifice made by the existing partners, it is assumed that A and B sacrifice in their old ratio.

 

Calculation of Sacrificing Ratio

Sacrificing Ratio =Old ratio- new ratio

A’s	=2/5-19/60
	=24-19/60=5/60
B’s	=2/5-19/60
	=24-19/60=5/60

A : B = 5:5=1:1

 

Amit and Vidya are partners sharing profits in the ratio of 3 : 2. They admit Chintan into partnership who acquires 1/5th of his share from Amit and 4/25th share from Vidya. Calculate New Profit-sharing Ratio and Sacrificing Ratio.

Calculation of New Profit Sharing Ratio

Amit: Vidya=3:2 (Old Ratio)

Chintan acquires 1/5th of his share from Amit And,

Remaining 4/5th (1−1/5) of his share from Vidya.

If 4/5th share of Chintan =4/25

Chintan 's share=4/25×54=5/25

Amit 's sacrifice=1/5×1/5=1/25

Vidya 's sacrifice=4/25

Amit 's new share=3/5−1/25=1/5−1/25=14/25

Vidya 's new share=2/5−4/25=10−4/25=6/25

Chintan 's new share=1/5×5/5=5/25

Amit: Vidya:R=14:6:5

Sacrificing Ratio=1:4

 

Gold and Silver are partners sharing profits and losses in the ratio of 2 : 5. They admit Copper on the condition that he will bring    ` 14,000 as his share of goodwill to be distributed between Gold and Silver. Copper's share in the future profits or losses will be 1/4th. What will be the new profit-sharing ratio and what amount of goodwill brought in by Copper will be received by Gold and Silver? 

 

	A	B
OLD RATION	2  :	5

C is admitted for 1/4share

Let the combined share of A, B and C be = 1

Combined share of A and B after C’s admission = 1 − C’s share

=1-1/4

=3/4

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

A’s	=2/7×3/4
	=6/28
B’s	=5/7×3/4
	=15/28

New profit sharing ratio=

A		B		C
6/28	:	15/28	:	1/4
6/28	:	15/28	:	7/28
6	:	15	:	7

Distribution of C’s share of Goodwill  OR  A and B will be covered

C’s share of Goodwill =    ` 14,000

A will get =14,000×2/7=4,000

B will get =14,000×5/7=10,000

 

Old Ratio of Vimal and Nirmal is 3:2

Share of Profits Kailash will get from Vimal 1/5th of his share 3/5

= 3/5×1/5=3/25

Share of Profits Kailash will get from Nirmal 2/5th of his share 2/5

= 2/5×2/5=4/25

Remaining of –

Vimal  =  3/5 - 3/25 = 12/25

Nirmal= 2/5 - 4/25 = 6/25

Share of Kailash= 3/25 + 4/25=3+4/25=7/25

New Profit sharing ratio of Vimal, Nirmal and Kailash= 12/25 : 6/25 : 7/25

Kailash brings his share of goodwill in cash =75,000 × 7/25 = 21,000

Vimal and Nirmal will be compensated in sacrificing =3:4

Vimal =21,000×3/7=9,000

Nirmal =21,000×4/7=12,000

 

Journal Entry for Goodwill:

 

	Bank a/c    To Premium for Goodwill a/c (Being Goodwill brought in Cash)	Dr.     Dr.	21,000     21,000	21,000     21,000
	Premium for Goodwill a/c    To Vimal’s Capital a/c    To Nirmal Capital a/c (Being partners compensated in sacrificing ratio 3:4)