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Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce PDF Download

Q1: (New Partner's is given but Sacrifices made by Old Partners are not given). A amd B are partners sharing profits in the ratio of 5:3 C is admitted for Illustrations: Admission of a Partner | Accountancy Class 12 - Commerceshare in the profits. Calculate of New protit-sharing Ratio of the partners.
Ans: 
Calculation of New Profit-sharing Ratio:
Old Profit-sharing Ratio of A and B = Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Let the total share =1, C's share = 1/4, Remaining share of A and B = Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Distribute the remaining share of 3/4 in the old profit-sharing ratio of 5:3 between A and B.
A's New share = Illustrations: Admission of a Partner | Accountancy Class 12 - CommerceB's New share
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, New Profit-sharing Ratio of A and B
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Since, only share of the new partner is given C acquires his share from A and B in their old profits. Calculate New ratio.

Q2: A, B and C were partners in a firm shaing profits in 3:2:1 ratio. They admitted D for 10% profits. Calculate New Profit-sharing Ratio.
Ans:
D's share = Illustrations: Admission of a Partner | Accountancy Class 12 - CommerceRemaining share
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Distribute the remaining share of Illustrations: Admission of a Partner | Accountancy Class 12 - Commerceamong A,B and C in their old ratio of 3:2:1 A's New share = Illustrations: Admission of a Partner | Accountancy Class 12 - CommerceB's New shareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
C's New shareIllustrations: Admission of a Partner | Accountancy Class 12 - CommerceD's shareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, New Profit-sharing Ratio A, B,C and D
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce

Q3: A and B are partners, They admit C for Illustrations: Admission of a Partner | Accountancy Class 12 - Commerceshare. In future, profit-sharing ration between A and B would be 2: 1. Calculate New Profit-share Ratio.
Ans:
Let the total share=1
Share of incoming partner C = 1/4 Remaining share
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Existing parners' shares are being calculated by dividing remaining share in their future profit-share ratio (i.e., 2:1) as under.
A's New shareIllustrations: Admission of a Partner | Accountancy Class 12 - CommerceB's New share
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, New Profit=sharing Ratio of A, B and C
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce

Q4: A and B are partners sharing profits in the ratio of 5 : 4. They admit C for a Illustrations: Admission of a Partner | Accountancy Class 12 - Commerceshare of profits which he acquires, in equal proportions from both. Find the new profit-sharing ration.
Ans:
C's share of profit in the firm is 1/10 which he acquires from A and B in equal proportions.
It means A has surrenderedIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
B has surrendered Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
New Share = Old Share-Share surrendered
A's New ShareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
B's New ShareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
C's ShareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, New Porfit-sharing Ratio of A, B and C
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce

Q5: Naresh and Namit are partners sharing porfits in the ratio of 2:1. They admit Nimesh into partnership of 25% share of profit. Nimesh acquired the share from old partners in the ratio of 3:2. Calculate New Profit-sharing Ratio.
Ans: Nimesh gets from Naresh Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
from Namit he gets Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Nimesh's Share = Old Share-Share Surrendered
∴ New Share of NereshIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
New Share of NamitIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Share of Nimesh Illustrations: Admission of a Partner | Accountancy Class 12 - CommerceThus, New Profit-sharing Ratio
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce

Q6: (Old Partners Sacrifice Fraction of their Shares in Favour of New Partner).
A and B are partners in a firm sharing profits and losses in the ration of 3:2 A surrenders Illustrations: Admission of a Partner | Accountancy Class 12 - Commerceof his share, whereas B surrenders Illustrations: Admission of a Partner | Accountancy Class 12 - Commerceof his share in favour of C, the new partner. Calculate new profit-sharing ratio.

Ans: A's share = 3/5, A surrenders in favour of C = Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
B's share = 2/5, B surrenders in favour of C = Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
New Share =Old Share-Share surrendered
So, A's New share =Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
So, B's New share =Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
C's share is the sum of shares surrendered by A and B
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, New Profit-sharing Ratio A, B and C
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce

Q7: On 1st April 2010m Sahil and Charu entered into partnership for sharing profit in the ratio of 4:3. They admitted Tanu as a new partner on 1st April, 2012 of 1/5th share which she acquired equally from Sahil and Charum Charu and Tanu earned profits at a higher rate than the normal rate of return for the year ended 31st March, 2013. Therefore, they decided to expand their business. To meet the requirments of additonal capital, they admitted Puneet as a new partner on 1st April, 2013 for 1/7th share in profit which he acquried from Sahil and Charu in 7 : 3 ratio.
Calculate:
(i) New profit-sharing ration of Sahil, Charu and Tanu for the year 2012 13
(ii) New profit-sharing ratio of Sahil, Chaur, Tanu and Puneet on Puneet's admission.

Ans: (i) Calculation of New Profit-sharing Ratio of Sahil, Charu and Tanu for th year 2012-13:
Sahil's Old Share = 4/7
Sahil surrenders in favour of TanuIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Sahil's New ShareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Chaur's Old ShareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Charu surrenders in favour of Tanu Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Charu's New ShareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Tanu's shareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, New Profit-sharing Ratio among Sahil, Charu and TanuIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
(ii) New Profit-sharing Ratio of Sahil, Charu, Tanu and Puneet on Puneet's Admission:
Sahil's Old Share Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Sahil surrenders in favour of PuneetIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Sahil's New Share Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Charu's Old ShareIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Tanu's share remains the same, i.e., Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Tanu's share remains the same, i.e.,Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, New Profit-sharing Ratio among Partners
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Sahil : Charu : Tanu : Puneet = 13 : 10 : 7 : 5.

Q8: L and M are partners in a firm sharing profits in the ratio of 5: 3. They admit N decide that the profit-shareing ratio between M and N shall be same as existing between L and M. Calculate new profit-sharing ratio and the sacrificing ratio.
Ans: 
As the ratio of L and M is 5 : 3. Ratio of M and N should be 5 : 3.
Since M's share is 60% of L's share Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, N's share is 60% of 3=1.8.
New Ratio of L, M and N =5:3:1.8 or 25:15:9.
Calculation of Sacrificing Ratio:
Share sacrificed=Old Share - New Share
L's sacrificeIllustrations: Admission of a Partner | Accountancy Class 12 - CommerceM's sacrifice Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, sacrificing Ratio of L and M Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce

Q9: (Old Partners sacrifice Fraction of their Shares in Favour of New Partner).
A and B are partners in a firm sharing profits and losses in the ration of 5 : 3. A surrenders 1/20th of this share, whereas B surrenders 1/24th of his share in favour of C, a new partner. Calculate new profit-sharing ration and the sacrificing ratio.
Ans: A's share Illustrations: Admission of a Partner | Accountancy Class 12 - CommerceA surrenders in favour of Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
So, A's New share = Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
B's share = 3/8, B surrrenders in favour of Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
B's New share Illustrations: Admission of a Partner | Accountancy Class 12 - CommerceC's Share
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Thus, New Profit-sharing Ratio of A, B and C
Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Sacrificing Ratio of A and BIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce

Q10: (New profit-sharing Ratio of all Partners is given).
A and B are partners sharing profits in the ratio of 3 : 2. C is admitted into partnership. New profit-shareing ratio among A, B and C is 5: 3 : 2. Find the sacrificing ratio.
Ans: 
Sacrifice of share =Old share - New share
A's old share 3/5, A's new share = 5/10, thus, A's sacrifice is Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
A's old share = 2/5, B's new share = 3/10, thus, B's sacrifice is Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce
Hence, Sacrificing Ratio of A and BIllustrations: Admission of a Partner | Accountancy Class 12 - Commerce

The document Illustrations: Admission of a Partner | Accountancy Class 12 - Commerce is a part of the Commerce Course Accountancy Class 12.
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FAQs on Illustrations: Admission of a Partner - Accountancy Class 12 - Commerce

1. What is the process for admitting a partner in a commerce business?
Ans. The process for admitting a partner in a commerce business typically involves several steps. Firstly, the existing partners must discuss and agree on the need for a new partner. Then, they should draft and sign a partnership agreement that outlines the terms and conditions of the partnership. Next, the new partner needs to invest capital or bring in other valuable assets as per the agreement. Finally, legal formalities such as registration with the relevant authorities and updating necessary documents should be completed.
2. Can a new partner be admitted without the consent of existing partners?
Ans. Generally, a new partner cannot be admitted without the consent of the existing partners in a commerce business. Admitting a new partner is a significant decision that affects the ownership, profits, and liabilities of the business. Therefore, the existing partners should be involved in the decision-making process and reach a mutual agreement before admitting a new partner.
3. What factors should be considered before admitting a partner in a commerce business?
Ans. Before admitting a partner in a commerce business, several factors should be considered. These include the new partner's skills, experience, and compatibility with existing partners. It is essential to evaluate their financial stability and ability to contribute capital or valuable assets to the business. Additionally, the potential partner's reputation, work ethics, and long-term commitment should also be taken into account.
4. Are there any legal requirements for admitting a partner in a commerce business?
Ans. Yes, there are legal requirements for admitting a partner in a commerce business. These requirements may vary depending on the jurisdiction and local regulations. Generally, the partnership agreement should be drafted and signed by all partners to establish the rights and responsibilities of each member. Additionally, the business may need to be registered with the appropriate government authorities and update necessary documents to reflect the new partner's involvement.
5. What are the potential benefits of admitting a partner in a commerce business?
Ans. Admitting a partner in a commerce business can bring various benefits. Firstly, it allows for the sharing of responsibilities, workload, and decision-making among partners, reducing the burden on individual partners. Secondly, additional capital or valuable assets brought in by the new partner can help finance business expansion or other growth opportunities. Thirdly, new partners may bring in expertise, skills, or networks that can enhance the business's overall capabilities and competitiveness.
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