(a) (i) Kayal, Mala and Neela are partners sharing profits in the ratio of 2 : 2 : 1. Kayal retires and the new profit sharing ratio between Mala and Neela is 3 : 2. Calculate the gaining ratio.
(ii) Sunil, Sumathi and Sundari are partners sharing profits in the ratio of 3 : 3 : 4. Sundari retires and her share is taken up entirely by Sunil. Calculate the new profit sharing ratio and gaining ratio.
OR
(b) Prepare common-size statement of financial position for the following particulars of Yasmin Ltd. and Sakthi Ltd.
| Particulars | Yasmin Ltd. (₹) | Sakthi Ltd. (₹) |
|---|---|---|
| I. Equity and Liabilities | ||
| 1. Shareholder's fund (a) Share capital | 2,00,000 | 3,00,000 |
| (b) Reserves and surplus | 50,000 | 60,000 |
| 2. Non-current liabilities — Long-term borrowings | 1,50,000 | 1,80,000 |
| 3. Current liabilities — Trade payables | 1,00,000 | 60,000 |
| Total | 5,00,000 | 6,00,000 |
| II. Assets | ||
| 1. Non-current assets (a) Fixed assets | 2,00,000 | 3,00,000 |
| (b) Non-current investments | 50,000 | 1,20,000 |
| 2. Current assets — Inventories | 2,00,000 | 90,000 |
| Cash and cash equivalents | 50,000 | 90,000 |
| Total | 5,00,000 | 6,00,000 |
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Start your 14-day free trial to unlock the full solution →(a)(i) Mala & Neela each gain 1/5 → gaining ratio 1:1. (a)(ii) Sunil 3/10+4/10=7/10, Sumathi 3/10 → new ratio 7:3, Sunil is the sole gainer. (b) Each item shown as % of balance-sheet total for Yasmin Ltd. and Sakthi Ltd.
(a)(i) Gaining ratio — Kayal retires (Kayal : Mala : Neela = 2 : 2 : 1)
Gaining ratio = New share − Old share.
- Old shares: Kayal 2/5, Mala 2/5, Neela 1/5.
- New shares (Mala : Neela = 3 : 5)... i.e. 3 : 2 → Mala 3/5, Neela 2/5.
| Partner | New share | Old share | Gain |
|---|---|---|---|
| Mala | 3/5 | 2/5 | 1/5 |
| Neela | 2/5 | 1/5 | 1/5 |
Gaining ratio = 1/5 : 1/5 = 1 : 1.
(a)(ii) New ratio & gaining ratio — Sundari retires (Sunil : Sumathi : Sundari = 3 : 3 : 4)
Sundari's share = 4/10 is taken entirely by Sunil.
- Sunil's new share = 3/10 + 4/10 = 7/10
- Sumathi's new share = 3/10
New profit-sharing ratio (Sunil : Sumathi) = 7 : 3.
Gaining ratio: Sunil gains 4/10, Sumathi gains nil → Sunil is the sole gainer (gain = 4/10). There is no ratio to split, as only one partner gains.
OR (b) Common-Size Statement of Financial Position — Yasmin Ltd. and Sakthi Ltd.
Each item expressed as a % of its own balance-sheet total (₹5,00,000 for Yasmin; ₹6,00,000 for Sakthi).
| Particulars | Yasmin (₹) | % | Sakthi (₹) | % |
|---|---|---|---|---|
| I. Equity and Liabilities | ||||
| Share capital | 2,00,000 | 40.00 | 3,00,000 | 50.00 |
| Reserves and surplus | 50,000 | 10.00 | 60,000 | 10.00 |
| Long-term borrowings | 1,50,000 | 30.00 | 1,80,000 | 30.00 |
| Trade payables | 1,00,000 | 20.00 | 60,000 | 10.00 |
| Total | 5,00,000 | 100.00 | 6,00,000 | 100.00 |
| II. Assets |
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