Calculating Gaining Ratio

Q.

Distinguish between sacrificing ratio and gaining ratio.

Q.

A and B were partners in a firm sharing profits and losses in the ratio 3 : 2. They admit C into the partnership with $\frac{1}{6}$ share in the profits. Calculate the new profit sharing ratio.

Q.

Radha and Rukmini are partners in a firm sharing profits in 3 : 2 ratio. They admitted Gopi as a new partner Radha surrendered $\frac{1}{3}$ of her share in favour of Gopi and Rukmini surrendered $\frac{1}{4}$ of her share in favour of Gopi. Calculate the new profit sharing ratio.

Q.

(a) A and B are partners in a firm sharing profits in the ratio of 3 : 2. C is admitted as a partner. A and B surrender $\frac{1}{2}$ of their respective share in favour of C. Find the new profit sharing ratio and also the sacrificing ratio.

(b) C is to bring his share of premium for goodwill in cash. The goodwill of the firm is estimated at Rs 4, 00, 000. Pass necessary entries for the record of goodwill in the above case.

Q.

Singh, Gupta and Khan are partners in a firm sharing profits in 3 :2 : 3 ratio. They admitted Jain as a new partner. Singh surrendered $\frac{1}{3}$ of his share in favour of Jain, Gupta surrendered $\frac{1}{4}$ of his share in favour of Jain and Khan surrendered $\frac{1}{5}$ in favour of Jain. Calculate new profit sharing ratio.

Q.

Rao and Swami are partners in a firm sharing profits and losses in 3 : 2 ratio. They admit Ravi as a new partner for $\frac{1}{8}$ share in the profits. The new profit sharing ratio between Rao and Swami is 4 : 3. Calculate new profit sharing ratio and sacrificing ratio.

Q.

A, B and C are partners sharing profits in the ratio of 5:3:2. They admit D into partnership. The new profit sharing ratio of partners is 3:2:2:3. Calculate the sacrificing ratio.

Q.

Sandeep and Navdeep are partners in a firm sharing profits in 5 : 3 ratio. They admit C into the firm and the new profit sharing ratio was agreed at 4 : 2 : 1. Calculate the sacrificing ratio.

Q.

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. C is admitted for $\frac{1}{5}$th share in profits of the firm. Calculate the new profit sharing ratio of the partners if,

(a) C gets it equally from A and B

(b) C gets it from A and B in the ratio of 2:1

(c) C gets it wholly from A

(d) C gets it wholly from B

(e)C gets it $\frac{3}{20}$ from A and $\frac{1}{20}$ from B.

Q.

(a) A and B are partner sharing profits in the ratio of 7 : 3. C was admitted with $\frac{3}{7}th$ share in the profit which he took $\frac{2}{7}th$ from A and $\frac{1}{7}th$ from B. Calculate new ratio of partners.

(b)Ram and Shyam are partners in a firm sharing profits in the ratio of 7 : 5. Mohan is admitted on $\frac{1}{6}th$ share which he takes $\frac{1}{24}th$ from Ram and $\frac{1}{8}th$ from Shyam. Calculate the new profit sharing ratio of the partners.

Q.

Suresh and Ramesh were partners in a firm sharing profits in 5:3 ratio. On 1-4-2013 they admitted Deepak as a new partner for 1/4th share. On 31st July, 2013 Karan was admitted as a new partner for 1/6th share which he acquired equally from Suresh, Ramesh and Deepak. Calculate the new profit sharing ratio of Suresh, Ramesh, Deepak and Karan.

Q.

Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3:1. Chaman was admitted as a new partner for $\frac{1}{6}$ th share in the profits. Chaman acquired $\frac{2}{5}$th of his share from Amit. How much share did Chaman acquire from Beena?

Q.

A, B and C were partners in a firm sharing profits in 3 : 2 : 1 ratio. They admitted D for 10% profits. Calculate the new profit sharing ratio.

Q.

What are the different ways in which a partner can retire from the firm ?

Q.

Assuming that the Current Ratio is 2 : 1, state, giving reasons, which of the following transactions would (i) improve, (ii) reduce, or (iii) not alter, the current ratio,

(i) Cash collected from trade receivables or cash received against B/R on its maturity.

(ii) B/R received from trade receivables or B/R drawn.

(iii) B/R endorsed to trade payables.

(iv) B/R dishonoured.

(v) Sale of Inventories at par for cash.

Q.

Fresh fruit contains $68\%$ water and dry fruit contains $20\%$ water How much dry fruit can be obtained from $100\mathrm{kg}$of fresh fruits?

1. $32\mathrm{kg}$

2. $52\mathrm{kg}$

3. $40\mathrm{kg}$

4. $80\mathrm{kg}$

Q.

A, B, C and D were partners sharing profits in the ratio of 2 : 1 : 3 : 4. B retires and his share is acquired by A and C in the ratio of 4 : 1. Calculate the new ratio and the gaining ratio.

Q.

Anita, Jaya and Nisha are partners sharing profits and losses in the ratio of 1:1:1 Jaya retires from the firm. Anita and Nisha decided to share the profit in future in the ratio 4 :3. Calculate the gaining ratio.

1. None of the above

2. . 2:1

3. 1:2

4. 5:2

Q. The ratio in which the remaining partners acquire the outgoing partner's share of profit is called ratio.

1. gaining
2. retiring
3. sacrificing
4. new

Q.

On 1-4-2010 Sahil and Charu entered into partnership for sharing profits in the ratio of 4:3. They admitted Tanu as a new partner on 1-4-2012 for 1/5th share which she acquired equally from Sahil and Charu. Sahil, Charu and Tanue earned profits at a higher rate than the normal rate of return for the year ended 31-3-2013. Therefore, they decided to expand their business. To meet the requirement of additional capital they admitted Puneet as a new partner on 1-4-2013 for 1/7th share of profits which he acquired from Sahil and Charu in 7 : 3 ratio.

Calculate :

(a) New profit sharing ratio of Sahil, Charu and Tanu for the year 2012 - 13.

(b) New profit sharing ratio of Sahil, Charu, Tanu and Puneet on Puneet's admission.

Q.

How will you deal with the accumulated profits and losses and reserves on the admission of a new partner?

Q.

How will you deal with a change in profit sharing ratio among existing partners? Take imaginary figures to illustrate your answer.

Q.

Arun, Bhushan and Chetan are partners in a firm sharing profits in 3 : 2 : 3 ratio. They decide to admit Sehzad as a partner, who is associated with them as their selling agent for the last 10 years. Arun surrendered $\frac{1}{3}$ of his share in favour of Sehzad. Bhushan surrendered $\frac{1}{4}$ of his share in favour of Sehzad and Chetan surrendered $\frac{1}{5}$ of his share in favour of Sehzad. (i) Calculate new profit sharing ratio, and (ii) Highlight the values in admitting Sehzad.

Q.

In what ratio does the outgoing partner be compensated by remaining partners for the goodwill contributed by him?

1. Profit Sharing ratio

2. Sacrificing Ratio

3. Capital ratio

4. Gaining Ratio

Q.

Gaining share =

1. New ratio - old ratio

2. Old ratio - new ratio

3. None of the above

4. Old ratio - sacrificing ratio

Q.

On 1-1-2008, Uday and Kaushal entered into partnership with fixed capitals of Rs 7, 00, 000 and Rs 3, 00, 000 respectively. They were doing good business and were interested in its expansion but could not do the same because of lack of capital. Therefore, to have more capital, they admitted Govind as a new partner on 1-1-2010. Govind brought Rs 10, 00, 000 as capital and the new profit sharing ratio decided was 3 : 2 : 5. On 1-1-2012, another new partner Hari was admitted with a capital of Rs 8, 00, 000 for $\frac{1}{10}$th share in the profits, which he acquired equally from Uday, Kaushal and Govind. On 1-4-2014 Govind died and his share was taken over by Uday and Hari equally.

Calculate :

(i) The sacrificing ratio of Uday and Kaushal on Govind's admission.

(ii) New profit sharing ratio of Uday, Kaushal, Govind and Hari on Hari's admission.

(iii) New profit sharing ratio of Uday, Kaushal and Hari on Govind's death.

Q.

The ratio in which the remaining partners acquire the outgoing partner's share of profit is called ______.

1. Old Ratio

2. Gaining Ratio

3. None of the above

4. Sacrificing ratio

Q. X, Y and Z were partners sharing profits in the ratio of 3:2:1. Z retired, X & Y decide to acquire Z's share in the ratio 1:2. is the new ratio.

1. 4:5
2. 3:2
3. 5:4
4. 5:3

Q.

Ashish, Barmon, and Chander are partners sharing profits and losses in the ratio of 2 : 1 : 2 respectively. Chander retires and Ashish and Barman decide to share the profits and losses equally in future. Calculate the gaining ratio

1. None of the above

2. 2:1

3. 1:3

4. 1:1

Q.

Amit, Sumit, and Punit share profit and losses in the ratio of 2:3:1, respectively. Amit retires and the remaining partners decide to take Amit’s share equally. Calculate the new ratio.

1. None of the above

2. 2:1

3. 1:2

4. 1:1