Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

Page No 5.86:

Question 1:

X,Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They
admit A into partnership and give him 1/5th share of profits. Find the new profit-sharing
ratio.

Answer:

X Y Z

OLD RATIO 5 : 3 : 2

A is admitted for 1/5 share of profit

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

Combined share of X, Y and Z after A’s admission =1 − A’s share

=1-1/5

=4/5

New Ratio = Old Ratio × Combined share of X, Y and Z

X= 5/10×4/5=20/50

Y=3/10×4/5=12/50

Z=2/10×4/5=8/50

X Y Z A

New profit sharing

ratio = 20/50 : 12/50 : 8/50 : 1/5

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

= 20 : 12 : 8 : 10

= 10 : 6 : 4 : 5

Page No 5.86:

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

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

X Y Z

New profit sharing

ratio= 29/70 : 11/70 : 3/7

= 29 : 11 : 3

= 29 : 11 : 30

Page No 5.86:

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

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

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 5.86:

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 5.86:

Question 5:

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

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.

Answer:

Calulation of New Profit Sharing Ratio

Bharti :Astha=3:2 (Old Ratio)

Dinkar=1/5

Bharti's sacrifice=1/5×1/2=1/10

Astha's sacrifice=1/5×1/2=1/10

Bharti's new share=3/5−1/10=6−1/10=5/10

Astha's new share=2/5−1/10=4−1/10=3/10

Dinkar's new share=1/5×2/2=2/10

Bharti :Astha :Dinkar=5:3:2 (New Ratio)

Page No 5.86:

Question 6:

X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted
as partner with 1/4 share in profit. Z takes his share from X and Y in the ratio of 2 : 1.
Calculate new profit-sharing ratio.

Answer:

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

Old Profit Sharing Ratio amongst Partners (X and Y) is 3 : 2

Z is admitted for 1/4th Share in Profits
Sacrificing Ratio of X and Y is 2 : 1
Z aquires =2/3×1/4=2/12 from X

Z aquires =1/3×1/4=1/12 from Y

New ratio= old ratio – new ratio

X‘s new share=3/5 -2/12 =36-10/60=26/60

Y‘s new share=2/5 -1/12 =24-5/60=19/60

Z’s share=1/4=15/60

New ratio= 26:19:15

Page No 5.86:

Question 7:

Old ratio: S:J:B=1:1:1

T is admitted for 1/5 share

Let the total Profit of firm be 1

Remaining share of the SJB after T’s admission = 1-1/5=5-1/5=4/5

New share

S=4/5×1/3=4/15

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

S=4/5×1/3=4/15

S=4/5×1/3=4/15

T=1/5×3/3=3/15

New profit sharing ratio of all partners S:J:B:T = 4:4:4:3

Sacrificing ratio= Old – new

S=1-3-4/15=5-4/15=1/15

J=1-3-4/15=5-4/15=1/15

B=1-3-4/15=5-4/15=1/15

Sacrificing ratio of S:J:B=1:1:1

Page No 5.86:

Question 8:

Kabir and Farid are partners in a firm sharing profits and losses in the ratio of 7
: 3. Kabir surrenders 2/10th from his share and Farid surrenders 1/10th from his share
in favour of Jyoti; the new partner. Calculate new profit-sharing ratio and sacrificing
ratio.

Answer:

Calculation of New Ratio

Old Ratio of Kabir and Farid 7 : 3

Kabir sacrifices his share of profit in favour of Jyoti=210

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

Farid sacrifices his share of profit in favour of Jyoti =110

Jyoti's Share=210+110=310

New Ratio = Old Share − Share Sacrificed

Kabir's New Share=710-210=510Farid's New Share=310-110=210

New Profit Sharing Ratio = 5 : 2 : 3

Calculation of Sacrificing Ratio

Since, Kabir and Farid are sacrificing 2/10 share and 1/10 share respectively, therefore
the sacrificing ratio becomes 2 : 1.

Page No 5.86:

Question 9:

Find New Profit-sharing Ratio:

(i) R and T are partners in a firm sharing profits in the ratio of 3 : 2. S joins the
firm. R surrenders 1/4th of his share and T 1/5th of his share in favour of S.
(ii) A and B are partners. They admit C for 1/4th share. In future, the ratio
between A and B would be 2 : 1.
(iii) A and B are partners sharing profits and losses in the ratio of 3 : 2. They admit C for
1/5th share in the profit. C acquires 1/5th of his share from A and 4/5th share from B.
(iv) X, Y and Z are partners in the ratio of 3 : 2 : 1. W joins the firm as a new partner for
1/6th share in profits. Z would retain his original share.
(v) A and B are equal partners. They admit C and D as partners with 1/5th and 1/6th
share respectively.
(vi) A and B are partners sharing profits/losses in the ratio of 3 : 2 . C is admitted for
1/4th share. A and B decide to share equally in future.

Answer:

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

(i)

R T

OLD RATION 3 : 2 :

Sacrificing Ratio = Old Ratio × Surrender Ratio

R’s=3/5×1/4=3/20
T’s=2/5×1/5=2/25

New Ratio = Old Ratio − Sacrificing Ratio

R= 3/5-3/20=9/20
T=2/5-2/25=8/25

S’s Share = R’s Sacrifice + S’s Sacrifice

=3/20+2/25=23/100
R T S

New profit sharing

ratio = 9/20 : 8/25 : 23/100

= 25/100 : 32/100 : 23/100

= 25 : 32 : 23

(ii)

A B

OLD RATION 1 : 1

C admits for 1/4th share of profit

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

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

Combined share of A and B =1-C’s share

=1-1/4=3/4

New Ratio = Combined share of A and B ×2/3

A’s=3/4×2/3=6/12
B’s=3/4×1/3=3/12
A B C

New profit sharing

ratio = 6/12 : 3/12 : ¼

= 6/12 : 3/12 : 3/12

= 2 : 1 : 1

(iii)

A B

OLD RATION 3: 2

C admits for 1/5share of profit

A’s sacrifice = C’s share× 1/5

=1/5×1/5
=1/25
B’s sacrifice = C’s share× 4/5
=1/5×4/5
=4/25

New Ratio = Old Ratio − Sacrificing Ratio

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

A’s =3/5-1/25=14/25

B’s=2/5-4/25=6/25

A B C

New profit sharing

ratio = : 6/25 : 1/5
14/25
= : 6/25 : 5/25
14/25
= 14 : 6 : 5

(iv)

X Y Z

OLD RATION 3 : 2 : 1

W admits for 1/6 share of profit

Let combined share of all partner after W’s admission be = 1

Combined share X and Y in the new firm =1- Z’s share- W’s share

=1-1/6-1/6

=4/6

New Ratio = Old Ratio × Combined share of X and Y

A’s =3/5×4/6

=12/30

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

B’s =2/5×4/6

=8/30
X Y Z W

New profit sharing

ratio = : 8/30 : 1/6 : 1/6
12/30
= : 8/30 : 5/30 : 5/30
12/30
= 12 : 8 : 5 : 5

(v)

A B

OLD RATION 1 : 1

C admits for 1/5 share

D admits for 1/6 share

Let combined share of all partner after C and D’s admission be = 1

Combined share of profit of A and B after C and D’s admission =1- C’s share- Z’s share

=1-1/5-1/6

=19/30

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

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

A’s =1/2×19/30

=19/60

B’s =1/2×19/30

=19/60
X Y Z W

New profit sharing

ratio = : 19/60 : 1/5 : 1/6
19/60
= : 19/60 : 12/60 : 10/60
19/60
= 19 : 19 : 12 : 10

(vi)

A B

OLD RATION 3: 2

C admits for 1/5 share of profit

Let the combined share of all partners after C’s admission be = 1

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

=1-1/4

=3/4

New ratio of A and B each= Combined share of A and B×1/2

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

=3/4×1/2=3/8 each

X Y Z

New profit sharing

ratio = : 3/8 : ¼
3/8
= : 3/8 : 2/8
3/8
= 3 : 3 : 2

Page No 5.87:

Question 10:

Rakesh and Suresh are sharing profits in the ratio of 4 : 3. Zaheer joins and the new ratio
among Rakesh, Suresh and Zaheer is 7 : 4 : 3. Find out the sacrificing ratio.

Answer:

Rakesh Suresh Zaheer

OLD RATION 4 : 3

NEW RATIO 7 : 4 : 3

Sacrificing Ratio = Old Ratio − Sacrificing Ratio

Rakesh’s =4/7-7/14

=1/14

Suresh’s =3/7-4/14

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

=2/14
Rakesh Suresh

Sacrificing sharing ratio = 1/14 : 2/14

= 1 : 2

Question 11:

A and B are partners sharing profits in the ratio of 3 : 2. C is admitted as a partner. The
new profit-sharing ratio among A, B and C is 4 : 3 : 2. Find out the sacrificing ratio.

Answer:

A B C

OLD RATION 3: 2

NEW RATIO 4 : 3 : 2

Sacrificing Share = Old Ratio − New Ratio

A’s =3/5-4/9

=7/45

B’s =2/5-3/9

=3/45
A B

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

Sacrificing sharing ratio = 7/45 : 3/45

= 7 : 3

Page No 5.87:

Question 12:

A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. D is admitted for 1/3rd
share in future profits. What is the sacrificing ratio?

Answer:

A B C

OLD RATIO = 4 : 3 : 2

D is admitted for 1/3share of profit

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

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

=1-1/3

=2/3

New Ratio = Old Ratio  combined share of A, B and C

A’s =4/9×2/3
=8/27
B’s =3/9×2/3

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

=6/27
C’s =2/9×2/3
=4/27

Sacrificing Ratio = Old Ratio − New Ratio

A’s =4/9-8/27

=4/27

B’s =3/9-6/27

=3/27

C’s =2/7-4/27

=2/27
A B C

Sacrificing sharing ratio = 4/27 : 3/27 : 2/27

= 4 : 3 : 2

Page No 5.87:

Question 13:

A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20

respectively. E joins the partnership for 20% share and A, B, C and D in future would
share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. Calculate new profit-
sharing ratio after E's admission .

Answer:

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

A B C D

OLD RATIO = 36 : 24 : 20 : 20

E is admitted for 20/100 share

Let combined share of profit of all partners after E’s admission = 1

Combined share of A, B, C and D after E’s admission = 1 − E’s Share

=1-20/100

=80/100

New Ratio = Combined of A, B, C and D  Agreed Share of A, B, C and D

A’s =80/100×3/10

=24/100

B’s =80/100×4/10

=32/100

C’s =80/100×2/10

=16/100

D’s =80/100×1/10

=8/100
A B C D E

New profit sharing

ratio = : 32/100 : 16/100 : 8/100 : 20/100
24/100

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

= : 8 : 4 : 2 : 5
6

Page No 5.87:

Question 14:

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

Answer:

Old Ratio of X and Y is 3 : 2.

X's sacrifice=13×35=315Y's sacrifice=110Sacrificing Ratio=315:110or 2 :1

New Ratio = Old Share − Share Sacrificed

X's new share=35-315=615Y's new share=25-

110=310Z's share=315+110=930New Ratio=615:310:930=4 :3 : 3

Page No 5.87:

Question 15:

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.

Answer:

Calculation of New Profit Sharing Ratio

Old Ratio of A, B and C is 2 : 2 : 1

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

. 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

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

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

Page No 5.87:

Question 16:

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

Answer:

Calulation of New Profit Sharing Ratio

P:Q=3:2 (Old Ratio)

R acquires 1/5th of his share from P And,

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

If 4/5th share of R=4/25

R's share=4/25×54=5/25

P's sacrifice=1/5×1/5=1/25

Q's sacrifice=4/25

P's new share=3/5−1/25=1/5−1/25=14/25

Q's new share=2/5−4/25=10−4/25=6/25

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

R's new share=1/5×5/5=5/25

P:Q:R=14:6:5

Sacrificing Ratio=1:4

Page No 5.87:

Question 17:

Answer;

Journal
Debit Credit
Amount Amount
Date Particulars L.F. ₹ ₹

Cash A/c Dr. 14,000

To Premium for Goodwill A/c 14,000
(c brought Premium for
Goodwill)

Premium for Goodwill A/c Dr. 14,000

To A’s Capital A/c 4,000
To B’s Capital A/c 10,000
(Premium for Goodwill distributed
between B and C in sacrificing ratio
i.e. 3:2)

Working notes;

Old ratio of A and B =2:5

C is admitted of ¼ share in the firm
Remaining share of A and B after C’s admission =1-1/4=3/4

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

A’s share =3/4×2/7==6/28

B’s share =3/4×5/7==15/28
C’s share =1/4×7/7==7/28
New profit sharing ratio of A, B and C=6:15:7
Sacrificing ratio= Old – new
A=2/7- 6/28=8-6/28=2/28
B=5/7-15/28=20-15/28=5/28
Sacrificing ratio of A:B=2:5

Page No 5.87:

Question 18:
A and B are partners sharing profits and losses in the ratio of 2 : 5. They admit C on the
condition that he will bring ₹ 14,000 as his share of goodwill to be distributed
between A and B. C'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 C will be received
by A and B?

Answer:

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

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

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

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

Page No 5.87:

Question 19:

Give Journal entries to record the following arrangements in the books of the firm:
(a) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a
premium (goodwill) of ₹ 2,000 for 1/4th share of the profits,
shares shares of B and C remain as before.
(b) B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a
premium of ₹ 2,100 for 1/4th share of profits which he acquires 1/6th from B and
1/12th from C.

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

Answer:

(a)

Journal
Debit Credit
Amount Amount
Date Particulars L.F. ₹ ₹

Cash A/c Dr. 2,000

To Premium for Goodwill A/c 2,000
(D brought Premium for
Goodwill)

Premium for Goodwill A/c Dr. 2,000

To B’s Capital A/c 1,200
To C’s Capital A/c 800
(Premium for Goodwill distributed
between B and C in sacrificing ratio
i.e. 3:2)

Working Note:

Distribution of premium for Goodwill-

B will get =2,000×3/5=1,200

A will get =2,000×2/5=800

(b)

Journal

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

Debit Credit
Amount Amount
Date Particulars L.F. ₹ ₹
Cash A/c Dr. 2,100
To Premium for Goodwill A/c 2,100
(D brought his share of
goodwill in cash)

Premium for Goodwill A/c Dr. 2,100

To B’s Capital A/c 1,400
To C’s Capital A/c 700
(Premium for Goodwill brought
distributed
between B and C in sacrificing Ratio
i.e. 2:1)

Working Note:

WN1

B C

Sacrificing ratio = 1/6 : 1/12

2 : 1

WN2

Distribution of Premium for Goodwill-

B will get =21,00×2/3=1.400

C will get =21,00×1/3=700

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

Page No 5.87:
Question 20:

B and C are in partnership sharing profits and losses as 3 : 1. They admit D into the
firm, D pays premium of ₹ 15,000 for 1/3rd share of the profits. As between
themselves, B and C agree to share future profits and losses equally. Draft Journal
entries showing appropriations of the premium money.

Answer:

Journal
Debit Credit
Amount Amount
Date Particulars L.F. ₹ ₹

Cash A/c Dr. 15,000

To Premium for Goodwill A/c 15,000
(D brought his share of goodwill in
cash)

Premium for Goodwill A/c Dr. 15,000

To B’s Capital A/c 15,000
(Premium for goodwill transferred to
B’s Capital)

C’s Capital A/c Dr. 3,750

To B’s Capital A/c 3,750
(Goodwill charged from C’s Capital
Account due
to his gain in profit sharing)

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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

WN1

Calculation of Sacrificing Ratio:

Let combined share of all partners after D’s admission be = 1

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

=1-1/3
=2/3

B and C each share of profit after D’s admission will be

=2/3×1/2
=2/6
=1/3 each

Sacrificing Ratio =Old ratio- new ratio

A’s =3/4-1/3
=5/12 (Sacrifice)
B’s =1/4-1/3
=-1/12(gain)

WN2

C is gaining in new the firm. Hence, C’s gain in goodwill will be debited to his capital
and given to B (sacrificing partner).

Goodwill of the firm= premium of Goodwill brough by D × reciprocal of D’s share

=15,000×3/1=45,000

C’s share of gain in goodwill= goodwill of the×firm share of gain

Prepare for Maths, Science Class 9 to 12th & Commerce Class +1 & +2
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 Class 12 Accountancy TS Grewal Solutions Vol 1

Chapter 5 Admission of a Partner

=45,000×1/12=3,750

Prepare for Maths, Science Class 9 to 12th & Commerce Class +1 & +2
www.tutorclasses.in