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Samiksha, Arshiya and Divya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2022, they agreed to share profits and losses in the ratio of 2 : 5 : 3.

Ans – a) solution;- Calculation of Net Accumulated Profit or Loss Profit & Loss A/c (Dr) = ₹ 50,000 Net Investment Fluctuation Fund = 40,000 – 20,000 = ₹ 20,000 Net Accumulated Loss = 50,000 – 20,000 = ₹ 30,000…

Anurag Pathak
May 5, 2023

Bimal and Lalit are partners sharing profits and losses in the ratio of 3 : 2. They changed their profit sharing ratio to 2 : 3 w.e.f 1st April 2023. The assets were revalued, and liabilities were reassessed on the date which resulted in a loss of ₹ 80,000. It was decided that the changed values will not be shown in the books of accounts. It will be adjusted in their capital accounts as by

Ans – a) Solution;- Old Ratio = 3 : 2 New Ratio = 2 : 3 Bimal = 3/5 – 2/5 = 3 – 2/5 = 1/5 Lalit = 2/5 – 3/5 = 2 – 3/5 = – 1/5 Bimal’s…

Anurag Pathak
May 5, 2023

Nasim and Parvez are partners sharing profits equally. They changed their profit sharing ratio to 2 : 3 w.e.f 1st April 2023. The assets were revalued, and liabilities were reassessed on that date which resulted in a loss of ₹ 80,000. It will be transferred to their capital account by

Ans – a) solution Old Ratio = 1 : 1 Nasim’s Share in revaluation Loss = 80,000 × 1/2 = ₹ 40,000 Parvez Share in revaluation Loss = 80,000 × 1/2 = ₹ 40,000 Journal entry Nasim’s Capital A/c Dr.…

Anurag Pathak
May 5, 2023

Aman and Akbar are partners sharing profits in the ratio of 3 : 2. They changed their profit sharing ratio to 2 : 3 w.e.f 1st April, 2023. The Balance Sheet as on the date of change in profit sharing ratio showed credit balance in Profit & Loss Account of ₹ 1,00,000, which the partners decide to carry forward and not distribute. The balance of ₹ 1,00,000 will be adjusted by

Ans – b) Solution:- Old Ratio = 3 : 2 New Ratio = 2 : 3 Calculation of Sacrifice/gain of partners Amar = 3/5 – 2/5 = 3 – 2/5 = 1/5 (sacrifice) Akbar = 2/5 – 3/5 = 2…

Anurag Pathak
May 5, 2023

Amar and Karam are partners sharing profits in the ratio of 3 : 2 before they changed the profit sharing ratio to equal. The Balance Sheet as on the date of change in profit sharing ratio showed debit balance in Profit & Loss Account of ₹ 50,000. The balance of ₹ 50,000 should

Ans – b) Explanation:- In the absence of any given information, all accumulated losses are transferred to partners in their old profit sharing ratiol.

Anurag Pathak
May 5, 2023

Hari, Sunil and Anil are partners sharing profits equally which they changed to 2 : 2 : 1 w.e.f 1st April, 2023. Their capitals on that date were ₹ 5,00,000 each and the balance in Current Accounts ₹ 40,000 (Cr.); ₹ 30,000 (Cr.) and ₹ 20,000 (Dr.) respectively. On that date, balances also existed in the books as follows:

Ans – a) Explanation:- The amount to be credited to partners = General Reserve + WCR – WCC 1,00,000 + 1,00,000 – 50,000 = ₹ 1,50,000

Anurag Pathak
May 5, 2023

Pawan, Raman and Shravan are partners. Before changing their profit-sharing ratio to 5 : 3 : 2, they were sharing profits equally. Workmen Compensation Reserve existed at ₹ 1,00,000 against which a claim existed at ₹ 20,000. The amount that will be credited to their Capital Accounts in their old profit-sharing ratio will be

Ans – b) Explanation:- The amount to be credited to partners = WCR – WCC = ₹ 1,00,000 – ₹ 20,000 = ₹ 80,000

Anurag Pathak
May 5, 2023

X and Y are partners sharing profits in the ratio of 3 : 2. They decide to share future profits in the ratio of 2 : 3. Investment Fluctuation Reserve of ₹ 50,000 appearing in the Balance Sheet, if no other information is available for change in the value of investments, will be

Ans – b) Explanation:- In the absence of any other information, Investment Fluctuation Reserve is distributed among partners in the old profit-sharing ratio.

Anurag Pathak
May 5, 2023

Due to change in profit sharing ratio, X’s sacrifice is 3/10, while z’s gain is 3/10. They decide to record the effect of the following without affecting the book figures. by passing an adjusting entry:

Ans – a) Solution:- Final Accumulated Profit = General Reserve + Profit and Loss (cr.) + Advertisement Suspence A/c (Dr.) Final Accumulated Profit = 35,000 + 15,000 – 20,000 = ₹ 30,000 X share = 30,000 × 3/10 = ₹…

Anurag Pathak
May 5, 2023

Due to change in the profit sharing ratio, Shiv’s gain is 1/6, while Om’s sacrifice is 1/6. They decide to record the effect of the following revaluation without affecting the book values of the assets and liabilities, by passing a single adjusting entry:

Ans – c) Solution:- Building – ₹ 50,000 Machinery – (₹10,000) Trade Creditors – ₹ 5,000 Outstanding Rent – (₹ 15,000) Revaluation Profit = ₹ 30,000 Shiv share in Revaluation Profit = 30,000 × 1/6 = ₹ 5,000 (debit) Om…

Anurag Pathak
May 5, 2023

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