Q.No.25 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

The solution of Question 25 Chapter 4 of +2-A

In the Books of _______________

Date	Particulars		L.F.	Debit	Credit
2019
April 1	X's Capital A/c	Dr		15,000
	Y's Capital A/c	Dr		5,000
	To Z’s Capital A/c*1				20,000
	(Being adjustment make for the revaluation of assets and liabilities)

 

Balance Sheet as on 01st April, 2019

Particulars		Amount	Particulars	Amount
Capital A/c*1			Sunday Assets	7,00,000
X	1,95,000
Y	1,45,000
Z	1,40,000	4,80,000		20,000
General Reserve		25,000
Profit and Loss A/c		1,30,000
		7,00,000		7,00,000

 

Working Note : 

Old Ratio of X, & Y	=	7 : 5 : 4
New Ratio of X, & Y	=	3 : 2 : 1

Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old Ratio - New Ratio

X's Share Sacrificing/Gaining	=	7	-	3
		16		6

=	21 - 24
		48

=	-3	(Gain)
			48

 

Y's Share Sacrificing/Gaining	=	5	-	2
		16		6

=	15 - 16
		48

=	-1	(Gain)
			48

Z's Share Sacrificing/Gaining	=	4	-	1
		16		6

=	12 - 8
		48

=	4	(Sacrifice)
			48

Calculation of Profit or Loss on Revaluation

Revaluation A/c

Particulars	Amount	Particulars		Amount
To Computers A/c	25,000	By Machinery A/c		50,000
To Outstanding expenses A/c	10,000	By Creditors A/c		15,000
To Profit on Revaluation	30,000
	65,000			65,000

 

WN *1 Adjustment of Profit on revaluation of in the sacrificing and gaining share: -

Total Amount for Adjustment	=	General Reserve+ P/L A/c+ Goodwill
	=	65,000+ 25,000+ 1,50,000
	=	Rs 2,40,000

 

Amount to be Debited to X's Capital	=	2,40,000	X	3
				48
	=	15,000

 

Amount to be Debited to Y's Capital	=	2,40,000	X	1
				48
	=	5,000

 

Amount to be Debited to Z's Capital	=	2,40,000	X	4
				48
	=	20,000

WN *2 Balance of all partners’ Capital Account

Partners’ Capital Accounts for the year ended 31st March, 2019

Particulars	X	Y	Z	Particulars		X	Y	Z
To Z's Capital A/c	15,000	5,000	-	By Balance B/d		2,10,000	1,50,000	1,20,000
				By X's Capital A/c *1		-	-	15,000
				By Y's Capital A/c *1		-	-	5,000
To Balance c/d	1,95,000	1,45,000	1,40,000
	2,10,000	1,50,000	1,40,000			2,10,000	1,50,000	1,40,000

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication