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Select the Most Appropriate Answer from the Alternative Given Below and Rewrite the Sentence. - Book Keeping and Accountancy

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Question

Select the most appropriate answer from the alternative given below and rewrite the sentence.

The proportion in which old partners make a sacrifice is called _________________ ratio.

Options

  • Capital

  • gaining

  • sacrifice

  • new

MCQ

Solution

The proportion in which old partners make a sacrifice is called sacrifice ratio.

Explanation: The proportion in which old partners make a sacrifice is called sacrifice ratio. It is the amount that is foregone by all the old partners equally or by some of the partners in the agreed share.

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Chapter 3: Reconstitution of Partnership (Admission of Partner) - Exercise 3 [Page 107]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 3 Reconstitution of Partnership (Admission of Partner)
Exercise 3 | Q 4 | Page 107

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RELATED QUESTIONS

The proportion in which old partners make a sacrifice is called ___________ ratio.

(a) capital
(b) gaining
(c) sacrifice
(d) new

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.


On 1.1.2008, Uday and Kaushal entered into a 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 the 1/10th 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 :

(1) The sacrificing ratio of Uday and Kaushal on Govind's admission.
(2) New profit sharing ratio of Uday. Kaushal, Govind and Had on Hari's admission.
(3) New profit sharing ratio of Uday, Kaushal and Hari on Govind's death.


What do you mean by 'sacrifice ratio'?


Give any one distinction between sacrificing ratio and gaining ratio.


Atal and Madan were partners in a firm sharing profits in the ratio of 5 : 3. On 31.3.2011 they admitted Mehra as a new partner fro 1/5th share in the profits. The new profit sharing ratio was 5 : 3 : 2. On Mehra’s admission the Balance Sheet to the firm was as follows: 

      Liabilities

Amount

Rs

    Assets

Amount

Rs

Capitals:

 

Land and Building

1,50,000

Atal:

1,50,000

 

Machinery

40,000

Madan:

90,000

2,40,000

Patents

5,000

Provision for bad debts

1,200

Stock

27,000

Creditors

20,000

Debtors

47,000

Workmen compensation Fund

32,000

Cash

4,200

 

 

Profit and Loss Account

20,000

 

2,93,200

 

2,93,200

 

 

On Mehra’s admission it was agreed that

(i) Mehra will bring Rs 40,000 as his capital and Rs 16,000 for his share of goodwill premium, half of which was with draw by Atal and Madan;

(ii) A provision of `2 1/2%` for bad and doubtful debts was to be created;

(iii) Included in the sundry creditors was an item of Rs 2,500 which was not to be paid;

(iv) A provision was to be made for an outstanding bill for electricity Rs 3,000;

(v) A claim of Rs 325 for damage against the firm was likely to be admitted. Provision for the same was to be made.

After the above adjustment, the capitals of Atal and Madan were to be adjusted on the basis of

Mehra’s capital. Actual cash was to be brought in or to be paid off to Atal and Madan as the case may be.

Prepare Revaluation Account, Capital Accounts of the partners and the Balance Sheet of the new firm.


X Ltd has a Current Ratio of 3 : 1 and Quick Ratio of 2 : 1. If the excess of Current Assets over

Quick Assets as represented by Stock is Rs 40,000, calculate Current Assets and Current Liabilities.


A, B and C were partners in a firm. Their capitals were A Rs 30,000, B Rs 20,000 and C Rs 10,000 respectively. According to the partnership deed they were entitled to an interest in capital @ 5% p.a. In addition B was also entitled to draw a salary of Rs 500 per month. C was entitled to a commission of 5% on the profit after charging the interest on capital, but before charging the salary payable to B. The net profits for the year were Rs 30,000 distributed in the ratio of their capitals without providing for any of the above adjustment. The profits were to be shared in the ratio 2 : 1: 2.

Pass the necessary adjustment entry showing the working clearly.

 


Answer in one sentence only.
What is sacrifice ratio?


Answer in one sentence only.
When is the ratio of sacrifice to be calculated?


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The proportion in which old partners make a sacrifice.


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