Dear Teachers,
These slides have been prepared based on the NCERT syllabus to support you in teaching Plus One and Plus Two Accountancy and Computerised Accounting.
Please review and verify the content before using it in your classrooms. If you find any errors or have feedback, please let me know.
Mujeeb Rahiman C
HSST Commerce
GHSS Pattikkad
Malappuram Dt.
✉️ mujeebchemmala@gmail.com
9995983075 �
Chapter - 2
Reconstitution of a Partnership Firm
Admission of a Partner
Sacrificing Ratio
Sunil
Shameer
1
2
1
2
Old Ratio 1:1
New Ratio 1:1:1
Sunil
Shameer
Sunil
Shameer
1
3
1
3
Thomas
1
3
Sunil
Shameer
Thomas
Sunil and Shameer are partners sharing profits in the ratio of 1:1. They admited Thomas as a new partner. The new profit sharing ratio will be 1:1:1
Partner’s Sacrifice = Old Share of Profit – New Share of Profit
Sunil’s Sacrifice
1
2
1
3
3
6
2
6
=
x3
x3
x2
x2
1
6
=
Shameer’s Sacrifice
1
2
1
3
3
6
2
6
=
x3
x3
x2
x2
1
6
=
=
=
Sacrificing Ratio = 1:1
The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called sacrificing ratio
Sacrificing Ratio
The new partner is required to compensate the old partner’s for their loss of share in the super profits of the firm for which he brings in an additional amount known as premium or share of goodwill. This amount is shared by the existing partners in the sacrificing ratio.
Sacrificing Ratio = Old Ratio – New Ratio
Illustration 6
Mohan and Balan are partners in a firm sharing profits in the ratio of 5:3. They admit Anil as a new partner for 1/7 share in the profit. The new profit sharing ratio will be 4:2:1. Calculate the sacrificing ratio of Mohan and Balan.
Old Ratio 5:3
New Ratio 4:2:1
Partner’s Sacrifice = Old Share of Profit – New Share of Profit
Mohan’s Old Share =
5
8
Mohan’s New Share =
4
7
Mohan’s Sacrifice =
5
8
4
7
x7
x7
x8
x8
35
56
32
56
=
3
56
=
Balan’s Old Share =
3
8
Balan’s New Share =
2
7
Balan’s Sacrifice =
3
8
2
7
x7
x7
x8
x8
21
56
16
56
=
5
56
=
Sacrificing Ratio = 3:5
Illustration 7
A and B are partners in a firm sharing profits in the ratio of 3:2. They admitted C as a new partner for 1/4 share. The new profit sharing ratio between A and B will be 2:1. Calculate their sacrificing ratio.
Old Ratio 3:2
New Ratio ?
C’s Share =
1
4
A’s new share =
3
4
2
3
=
6
12
Remaining Share =
1
4
1
=
3
4
This 3/4 share is to be shared by A and B in the ratio of 2:1
x
2
4
or
B’s new share =
3
4
1
3
=
3
12
x
1
4
or
New Ratio = 2:1:1
Old Ratio 3:2
New Ratio 2:1:1
Partner’s Sacrifice = Old Share of Profit – New Share of Profit
A’s Old Share =
3
5
A’s New Share =
2
4
A’s Sacrifice =
3
5
2
4
x4
x4
x5
x5
12
20
10
20
=
2
20
=
B’s Old Share =
2
5
B’s New Share =
1
4
B’s Sacrifice =
2
5
1
4
x4
x4
x5
x5
8
20
5
20
=
3
20
=
Sacrificing Ratio = 2:3
Illustration 8
R and S are partners in a firm sharing profits in the ratio of 4:3. They admitted T as a new partner. The profit sharing ratio of R, S and T will be 2:3:1. Calculate the gain or sacrifice of old partner.
Old Ratio 4:3
New Ratio 2:3:1
R’s Old Share =
4
7
R’s New Share =
2
6
R’s Sacrifice =
4
7
2
6
x6
x6
x7
x7
24
42
14
42
=
10
42
=
S’s Old Share =
3
7
S’s New Share =
3
6
S’s Sacrifice =
3
7
3
6
x6
x6
x7
x7
18
42
21
42
=
3
42
=
(Sacrifice)
(Gain)
T’s share =
1
6
x7
x7
7
42
=
(Gain)
MUJEEB RAHIMAN C
HSST COMMERCE
GHSS PATTIKKAD
MALAPPURAM DT