Ratio Calculations – NBC Institute

FA – May 2014 – L1 – SA – Q18 – Partnership Account

Determines the new profit-sharing ratio after admitting a new partner.

Question

Chuks and Bala are in partnership, sharing profit or loss in the ratio 2:1. If Bode is admitted as a new partner to take one-fifth as his share of profit or loss, while the old partners retain their old ratios, what should be the new profit or loss sharing ratio of the Partners?
A. Chuks = 8/15, Bala = 4/15, Bode = 1/5
B. Chuks = 6/15, Bala = 5/15, Bode = 1/5
C. Chuks = 7/15, Bala = 6/15, Bode = 1/5
D. Chuks = 8/15, Bala = 4/15, Bode = 3/15
E. Chuks = 8/15, Bala = 9/15, Bode = 3/15

Answer

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Tags: Partnership, Profit Sharing, Ratio Calculations
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2014

FA – Nov 2016 – L1 – Q7 – Interpretation of financial statements (Financial Ratios)

Calculation of financial ratios and explanation of gearing implications for shareholders.

Question

a) State any FIVE users of accounting information and their information needs. (5 marks)

b) The following is a summary of the final accounts of Gade Ltd for the year ended 31st December 2015.

Statement of Profit or Loss for the year ended 31st December 2015

Required:
Calculate each of the following ratios (where appropriate calculations should be shown to two decimal places):
i) Sales to capital employed. (2 marks)
ii) Liquid (acid test) ratio. (1 mark)
iii) Interest cover. (2 marks)
iv) Dividend cover. (2 marks)
v) Gearing ratio. (2 marks)
vi) Earnings per share. (2 marks)
vii) Explain the implications of the level of gearing for the ordinary shareholders of Gade Ltd. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Analysis, Financial Ratios, Gearing, Ratio Calculations, Shareholders
Level: Level 1

Topic: Interpretation of financial statements (Financial Ratios)
Series: NOV 2016

FA – May 2014 – L1 – SA – Q18 – Partnership Account

Determines the new profit-sharing ratio after admitting a new partner.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Partnership, Profit Sharing, Ratio Calculations
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2014

FA – Nov 2016 – L1 – Q7 – Interpretation of financial statements (Financial Ratios)

Calculation of financial ratios and explanation of gearing implications for shareholders.

Question

a) State any FIVE users of accounting information and their information needs. (5 marks)

b) The following is a summary of the final accounts of Gade Ltd for the year ended 31st December 2015.

Statement of Profit or Loss for the year ended 31st December 2015

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Analysis, Financial Ratios, Gearing, Ratio Calculations, Shareholders
Level: Level 1

Topic: Interpretation of financial statements (Financial Ratios)
Series: NOV 2016

Question Tag: Ratio Calculations

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FA – May 2014 – L1 – SA – Q18 – Partnership Account

Determines the new profit-sharing ratio after admitting a new partner.

FA – Nov 2016 – L1 – Q7 – Interpretation of financial statements (Financial Ratios)

Calculation of financial ratios and explanation of gearing implications for shareholders.

FA – May 2014 – L1 – SA – Q18 – Partnership Account

Determines the new profit-sharing ratio after admitting a new partner.

FA – Nov 2016 – L1 – Q7 – Interpretation of financial statements (Financial Ratios)

Calculation of financial ratios and explanation of gearing implications for shareholders.

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FA – May 2014 – L1 – SA – Q18 – Partnership Account

Determines the new profit-sharing ratio after admitting a new partner.

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FA – Nov 2016 – L1 – Q7 – Interpretation of financial statements (Financial Ratios)

Calculation of financial ratios and explanation of gearing implications for shareholders.

You're reporting an error for "FA – Nov 2016 – L1 – Q7 – Interpretation of financial statements (Financial Ratios)"

FA – May 2014 – L1 – SA – Q18 – Partnership Account

Determines the new profit-sharing ratio after admitting a new partner.

You're reporting an error for "FA – May 2014 – L1 – SA – Q18 – Partnership Account"

FA – Nov 2016 – L1 – Q7 – Interpretation of financial statements (Financial Ratios)

Calculation of financial ratios and explanation of gearing implications for shareholders.

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