TS Grewal Solutions for Class 12 Accountancy – Change in Profit-Sharing Ratio Among the Existing Partners

Question 1.
A and B are sharing profits and losses equally. With effect from 1st April, 2016, they agree to share profits in the ratio of 4:3. Calculate individual partner’s gain or sacrifice due to change in ratio.
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Question 2.
X, Y and Z are sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2016, they e future profits and losses in the ratio of 5:2:3. Calculate each partner’s gain or sacrifice due to the change in ratio.
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Question 3.
X, Y and Z are sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2016, they decide to share future profits and losses equally. Calculate each partners gain or sacrifice due to the change in ratio.
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Question 4.
A, B and C shared profit and losses in the ratio of 3:2:1 respectively. With effect from 1st April, 2016, they agreed to share profit equally. The goodwill of the firm was valued at Rs.18,000. Pass necessary journal entry.
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Question 5.

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Question 6.
X, Y and Z are partners sharing profits and losses in the ratio of 5:3:2, decided to share future profits and losses equally with effect from 1st April, 2016. On that date, the goodwill appeared in the books at Rs.12,000. But it was revealed at Rs.30,000. Pass Journal entries assuming that no goodwill will appear the books of accounts.
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Question 7.
A and B are partners in a firm sharing profits in the ratio of 2: 1. They decided with effect from 1st April, 2016, that they would share profits in the ratio of 3:2. But, this decision was taken after the profit for the year 2016-17 amounted to Rs.90,000 has been distributed in the old ratio.
Value of firm’s goodwill was estimated on the basis of aggregate of two years’ profits preceding the date decision became effective.
The profits for 2014-15 and 2015-16 were Rs.60,000 and Rs.75,000 respectively. It was decided that Goodwill Account will be opened in the books of the firm and necessary adjustment be made through Capital Accounts which, on 31st March stood, at Rs.1,50,000 for A and Rs.90,000 for B.
Pass necessary Journal entries and prepare Capital Accounts.
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Question 8.
X and Y are partners in a firm sharing profits and losses in the ratio of 3:2. With effect from 1st April, 2016, they decided to share future profits equally. On the date of change in the profit-sharing ratio, the Profit and Loss Account showed a credit balance of Rs.1,50,000. Record the necessary Journal entry for the distribution of the balance in the Profit and Loss Account immediately before the change in the profit-sharing ratio.
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Question 9.
X and Yare partners sharing profits in the ratio of 2:1. On 31st March, 2016, their Balance Sheet shot General Reserve of Rs.60,000. It was decided that in future they will share profits and losses in the ratio of 3:2. Pass necessary Journal entry in each of the following alternative cases:
(i) If they do not want to show General Reserve in the new Balance Sheet.
(ii) If they want to show General Reserve in the new Balance Sheet.
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Question 10.
X and Y are in partnership sharing profits in the ratio of 2: 3. With effect from 1st April, 2016 they agreed to share profits in the ratio of 1: 2. For this purpose, the goodwill of the firm to be valued at two years’ purchase of the average profit of last three years, which were Rs.1,50,000; Rs.1,60,000 and Rs.2,00,000 respectively. The reserves appear in the book Rs.1,10,000. Partners neither want to show the goodwill in the books nor want to distribute reserves. You are required to give effect to the change by passing a single Journal entry
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Question 11.

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Question 12.
X, Y and Z who are presently sharing profits and losses in the ratio of 5:3:2 decide to share future profits and losses in the ratio of 2:3:5. Give the Journal entry to distribute ‘Workmen Compensation Reserve of 1,20,000 at the time of change in profit-sharing ratio, when there is no claim against it.
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Question 13.
X, Y and Z who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future profits and losses in the ratio of 2:3:5. Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of Rs.1,20,000 at the time of change in profit-sharing ratio, when there is a claim of Rs.80,000 against it.
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Question 14.
A, B and C who are presently sharing profits and losses in the ratio of 5:3:2 decide to share future profits and losses in the ratio of 2:3:5. Give the Journal entry to distribute ‘Investment Fluctuation Reserve’ of Rs.20,000 at the time of change in profit-sharing ratio, when investment (market value Rs.95,000) appears at Rs.1, 00,000.
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