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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pinky and Rocky are partners in a firm sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2025 showed: Pinky’s Capital ₹54,000; Rocky’s Capital ₹36,000; Creditors ₹36,000; and assets – Cash ₹18,000, Machinery ₹36,000, Building ₹72,000. Goodwill of the firm is valued at ₹36,000 and the building at ₹90,000. The partners decide to share profits equally with effect from 1st April, 2024. Pass the necessary accounting entries without affecting the existing figure of building.
Sacrifice / (Gain): Pinky = 3/5 – 1/2 = 1/10 (Sacrifice); Rocky = 2/5 – 1/2 = –1/10 (Gain).
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2024 Apr 1 | Rocky’s Capital A/c Dr. (36,000 × 1/10) | 3,600 | ||
| To Pinky’s Capital A/c | 3,600 | |||
| (Adjustment of goodwill on change in profit-sharing ratio) | ||||
| 2024 Apr 1 | Rocky’s Capital A/c Dr. (18,000 × 1/10) | 1,800 | ||
| To Pinky’s Capital A/c | 1,800 | |||
| (Adjustment of appreciation in building ₹90,000 – ₹72,000 = ₹18,000, without altering its book value) |
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.28 - 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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