Chapter 4 – Change in Profit-Sharing Ratio Among the Existing Partners

Ts Grewal solutions Chapter 4 - Change in Profit-Sharing Ratio Among the Existing Partners

Ts Grewal 2019 Solutions for Class 12 Chapter 4 Change in profit sharing ratio among existing partners are provided here. All questions and Solutions from the Double Entry Book Keeping Ts Grewal 2019 Book of Class 12 Accountancy Chapter 4 Change in profit sharing ratio among existing partners are provided here for you for free. You can just download the PDF file by just clicking on the download button given below.

Question 1:

A and B are sharing profits and losses equally. With effect from 1st April, 2019, 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 (A and B) = 1 : 1

New Ratio (A and B) = 4 : 3

Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio

∴ A’s Gain = 1/14

B’s Sacrifice = 1/14