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A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit sharing ratio of A, B and C and D.

Solution:-

Anurag Pathak
May 14, 2023

A and B are partners sharing profits and losses in the proportion of 7 : 5. They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He takes this share as 1/24th from A and 1/8th from B. Calculate new profit sharing ratio.

Solution;-

Anurag Pathak
May 14, 2023

Girija, Yatin, and Zubin are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit Suresh into the partnership and give him 1/5th share of profits. Find the new profit-sharing ratio.

Solution:-

Anurag Pathak
May 14, 2023

Sonu, Sumit and Sahil are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share profits and losses in the ratio of 2 : 5 : 3 with effect from 1st April, 2023. Land (having book value of ₹ 1,00,000) was found undervalued by ₹ 5,00,000.

Calculation of Revaluation profit/loss Land undervalued = ₹ 5,00,000 Stock Overvalued = ₹ (3,00,000) Revaluation Profit = ₹ 2,00,000 Calculation of Sacrifice/gain of partners Old Ratio = 5 : 3 : 2 New Ratio = 2 : 5 : 3…

Anurag Pathak
May 7, 2023

X, Y and Z who are presently sharing profits and losses in the ratio of 5 : 3 : 2 decide to share future profits & losses equally with effect from 1st April, 2023.

Journal Entry of Goodwill appears in the books Goodwill appeared in the books is written off in the old ratio. X’s Capital A/c Dr. ₹ 15,000 Y’s Capital A/c Dr. ₹ 9,000 Z’s Capital A/c Dr. ₹ 6,000 To Goodwill…

Anurag Pathak
May 7, 2023

Janak, Chaman, and Anmol are partners sharing profits and losses in the ratio of 3 : 2 : 1. They decide to change their profit sharing ratio to 2 : 2 : 1. To give effect to this new profit sharing ratio, they decided to value goodwill at ₹ 60,000.

Ans – a) Solution:- Calculation of Sacrifice/gain of the partners Old Ratio = 3 : 2 : 1 New Ratio = 2 : 2 : 1 Janak = 3/6 – 2/5 = 15 – 12/30 = 3/30 (sacrifice) Chaman =…

Anurag Pathak
May 7, 2023

Arrange the following steps in their ascending order in the context of the reconstitution of the partnership:

Ans – d) Explanation:- First Revaluation A/c is prepared 2nd partner’s capital A/c is prepared 3rd Bank Account is prepared 4th Balance Sheet is prepared

Anurag Pathak
May 7, 2023

Atul, Madan and Mohan sharing profits and Losses in the ratio of 3 : 2 : 1 decide to share profits and losses equally w.e.f 1st April, 2023. Their Balance Sheet shows investment (at cost) at ₹ 3,50,000 and Investment Fluctuation Reserve at ₹ 60,000.

Ans – a) If there is no reduction in the market value of the Investment. The Investment Fluctuation Reserve is distributed among partners in their old profit-sharing ratio.

Anurag Pathak
May 7, 2023

P, Q, and R who are presently sharing profits and losses in the ratio of 5 : 4 : 1, decide to share future profits & Losses equally. The Balance Sheet shows the General Reserve of ₹ 80,000 and the Profit and Loss Account (Dr. Balance) of ₹ 20,000. The adjustment entry to give effect to the above without disturbing balances of General Reserve and Profit & Loss A/c is:

Ans – b) Solution:- Calculation of Sacrifice/gain of partners Old Ratio = 5 : 4 : 1 New Ratio = 1 : 1 : 1 P = 5/10 – 1/3 = 15 – 10/30 = 5/30 Q = 4/10 –…

Anurag Pathak
May 7, 2023

Assertion (A): Change in the profit sharing ratio among the existing partners results in a change in their existing agreement.

Ans – d) the existing agreement changes as it results in a gain of additional share in future profits for some partners while a loss of a part thereof for other partners. Both Assertion and Reason are correct and reason…

Anurag Pathak
May 7, 2023

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