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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A, B and C are sharing profits and losses in the ratio of 2 : 2 : 1. They decided to share profit w.e.f. 1st April, 2025 in the ratio of 5 : 3 : 2. They also decided not to change the values of assets and liabilities in the books. The book values and revised values of assets and liabilities were: Machinery ₹2,50,000 → ₹3,00,000; Computers ₹2,00,000 → ₹1,75,000; Sundry Creditors ₹90,000 → ₹75,000; Outstanding Expenses ₹15,000 → ₹25,000. Pass an adjustment entry.
Revaluation Account (Memorandum)
| Particulars (Dr.) | ₹ | Particulars (Cr.) | ₹ |
|---|---|---|---|
| To Computers A/c | 25,000 | By Machinery A/c | 50,000 |
| To Outstanding Expenses A/c | 10,000 | By Sundry Creditors A/c | 15,000 |
| To Profit on Revaluation | 30,000 | ||
| Total | 65,000 | Total | 65,000 |
Sacrifice / (Gain): A = 2/5 – 5/10 = –1/10 (Gain); B = 2/5 – 3/10 = 1/10 (Sacrifice); C = 1/5 – 2/10 = Nil. Adjustment = ₹30,000 × 1/10 = ₹3,000.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Apr 1 | A’s Capital A/c Dr. | 3,000 | ||
| To B’s Capital A/c | 3,000 | |||
| (Adjustment of revaluation profit ₹30,000 in the gaining / sacrificing ratio) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 3 Q.26 - Change in Profit-Sharing Ratio Among the Existing Partners", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 3 - Change in Profit-Sharing Ratio Among the Existing Partners.
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