Change in profit sharing Ratio for Existing-Important Questions

IMPORTANT QUESTIONS

CHAPTER 4: Change in Profit Sharing Ratio among the Existing Partners

1. Define Sacrificing Ratio?
2. Define Gaining Ratio?
3. Aman, Yatin and Uma were partners sharing profits and losses in the ratio of 5 : 3 : 2. Uma retired and her share was taken over by Aman and Yatin in 5 : 3 ratios. Calculate the gaining ratio of Aman and Yatin.
4. P, Q and R are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:
   Case 1. R acquires ⅕^th share from A.
   Case 2. R acquires ⅕^th share equally form A and B.
   Case 3. P, Q and R will share future profits and losses equally.
   Case 4. R acquires 1/10^th share of A and ½ share of B.
5. Ram and sham are partners sharing profits and losses in the ratio 4 : 1. They decide to share profits in the ratio of 3 : 2 on 1^st April 2018. However the decision to change the profit sharing ratio was taken after crediting share of profit for the year ended 31^st March, 2019 to capital accounts, which was Rs. 1,00,000.
   Goodwill of the firm as at 1^st April, 2018 was valued at Rs. 75,000. capital account credit balance were 5,00,000 and 6,00,000