Question 1

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

Sarbjit Singh · Accepted Answer

Question 01 Chapter 4 of +2-A

A and B are sharing profits and losses equally. With effect from 1st April, 2019, they agree to share profits in the ratio of 4 : 3. Calculate individual partner's gain or sacrifice due to the change in ratio

The solution of Question 01 Chapter 4 of +2-A:

Old Ratio of A & B
=
1 : 1

New Ratio of A & B
=
4 : 3

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

A’s Share Sacrificing/Gainin

Question 2

Q.No.2 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 02 Chapter 4 of +2-A
2. X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses in the ratio of 5 : 2 : 3. Calculate each partner’s gain or sacrifice due to the change in ratio.
The solution of Question 02 Chapter 4 of +2-A:

Old Ratio of X, Y, & Z
=
5 : 3 : 2

New Ratio of X, Y, & Z
=
5 : 2 : 3

Calculate the Sacrificing or Gaining Ratio of PartnersSacrificing or Gaining Ratio = Old

Question 3

Q.No.3 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 03 Chapter 4 of +2-A
3. X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses equally. Calculate each partner's gain or sacrifice due to the change in ratio.
The solution of Question 03 Chapter 4 of +2-A:

Old Ratio of X, Y, & Z
=
5 : 3 : 2

New Ratio of X, Y, & Z
=
1 : 1 : 1

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

Question 4

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

Sarbjit Singh · Accepted Answer

Question 04 Chapter 4 of +2-A
4. A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:Case 1. C acquires 1/5th share from A.Case 2. C acquires 1/5th share equally form A and B.Case 3. A, B and C will share future profits and losses equally.Case 4. C acquires 1/10th share of A and 1/2 share of B.
The solution of Question 04 Chapter 4 of +2-A:
Case I C acquires 1/5th fro

Question 5

Q.No.5 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 05 Chapter 4 of +2-A
5. A, B and C shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April, 2019, they agreed to share profits equally. The goodwill of the firm was valued at 18,000. Pass necessary Journal entries when: (a) Goodwill is adjusted through Partners' Capital Accounts; and (b) Goodwill is raised and written off.
The solution of Question 05 Chapter 4 of +2-A:

Old Ratio of X, Y, & Z
=
3 : 2 : 1

New Ratio of X, Y, & Z
=
1 : 1

Question 6

Q.No.6 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 06 Chapter 4 of +2-A
6. X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April 2018, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill should be valued at two years' purchase of the average profit of the preceding five years. The profits and losses of thepreceding years ended 31st March, are:

Year Ended 
2013-14
2014-15
2015-16
2016-17
2017-18

Question 7

Q.No.7 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 07 Chapter 4 of +2-A
7. Mandeep, Vinod and Abbas are partners sharing profits and losses in the ratio of 3: 2: 1. From 1st April 2019, they decided to share profits equally. The Partnership Deed provides thatin the event of any change in profit-sharing ratio, goodwill shall be valued at three years' purchase of the average profit of the last five years. The profits and losses of the past five years are:Profit − Year ended 31st March, 2015 − 1,00,000; 2016 − 1,50,000; 2018 − 2,00,000; 2

Question 8

Q.No.8 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 08 Chapter 4 of +2-A
8. X, Y and Z are partners sharing profits and losses in the ratio of 5: 3: 2, decided to share future profits and losses equally with effect from 1st April 2019. On that date, the goodwill appeared in the books at 12,000. But it was revalued at 30,000. Pass Journal entries assuming that goodwill will not appear in the books of account.
The solution of Question 08 Chapter 4 of +2-A:

Old Ratio of X, Y, & Z
=
5: 3: 2

New Ratio of X, Y, & Z
=
1: 1: 1

Question 9

Q.No.9 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 09 Chapter 4 of +2-A
9. A and B are partners in a firm sharing profits in the ratio of 2: 1. They decided with effect from 1st April 2018, that they would share profits in the ratio of 3: 2. But, this decision was taken after the profit for the year ended 31st March 2019 of 90,000 was distributed in the old ratio.Firm’s goodwill was valued on the basis of the aggregate of two years’ profits preceding the date decision became effective. The profits for the year ended 31st March 2017 and

Question 10

Q.No.10 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 10 Chapter 4 of +2-A
10. Jai and Raj are partners sharing profits in the ratio of 3: 2. With effect from 1st April 2019, they decided to share profits equally. Goodwill appeared in the books at 25,000. As on 1st April 2019, it was valued at 1,00,000. They decided to carry goodwill in the books of the firm.Pass the Journal entry giving effect to the above.
The solution of Question 10 Chapter 4 of +2-A:

Old Ratio of Jai and Raj
=
3:2

New Ratio of Jai and Raj
=
1:1

Calculate the

Question 11

Q.No.11 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 11 Chapter 4 of +2-A
11. X and Y are partners in a firm sharing profits and losses in the ratio of 3: 2. With effect from 1st April 2019, they decided to share future profits equally. On the date of the change in the profit-sharing ratio, the Profit and Loss Account showed a credit balance of 1,50,000. Record the necessary journal entry for the distribution of the balance in the Profit and Loss Account immediately before the change in the profit-sharing ratio.
The solution of Question

Question 12

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

Sarbjit Singh · Accepted Answer

Question 12 Chapter 4 of +2-A
12. A and B are partners in a firm sharing profits in the ratio of 4 : 1. They decided to share future profits in the ratio of 3 : 2 w.e.f. 1st April, 2019. On that day, Profit and Loss Account showed a debit balance of 1,00,000. Pass Journal entry to give effect to the above.
The solution of Question 12 Chapter 4 of +2-A
Adjustment of profit for the year March 2019: -

Amount of Profit Debited to A's Capital
=
1,00,000
X
4

5

=
80,000

Amount of

Question 13

Q.No.13 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 13 Chapter 4 of +2-A
13. X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. They also decide to record the effect of the following accumulated profits, losses and reserves without affecting their book values by passing a single entry .

Book Values

General Reserve
6,000

Profit and Loss A/c (Credit)
24,000

Advertisement Suspense A/c 
12,000

The solu

Question 14

Q.No.14 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 14 Chapter 4 of +2-A
14. A, B and C who are presently sharing profits and losses in the ratio of 5 : 3 : 2 decide to share future profits and losses in the ratio of 2 : 3 : 5. Give the Journal entry to distribute 'Workmen Compensation Reserve' of 1,20,000 at the time of change in profit-sharing ratio, when:

no information is given;
there is no claim against it.

The solution of Question 14 Chapter 4 of +2-A
Note: - in the both case there will be no pending claim against the workmen co

Question 15

Q.No.15 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 15 Chapter 4 of +2-A
15. X, Y and Z who are presently sharing profits and losses in the ratio of 5 : 3 : 2 decide to share future profits and losses in the ratio of 2 : 3 : 5. Give the journal entry to distribute 'Workmen Compensation Reserve' of 1,20,000 at the time of change in profit-sharing ratio, when there is a claim of 80,000 against it.
The solution of Question 15 Chapter 4 of +2-A
In the Books of _______________

Date
Particulars
L.F.
Debit
Credit

Workmen C

Question 16

Q.No.16 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 16 Chapter 4 of +2-A
16. X, Y and Z who are sharing profits in the ratio of 5 : 3 : 2, decide to share profits in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. Workmen Compensation Reserve appears at 1,20,000 in the Balance Sheet as at 31st March, 2019 and Workmen Compensation Claim is estimated at 1,50,000. Pass Journal entries for the accounting treatment of Workmen Compensation Reserve.
The solution of Question 16 Chapter 4 of +2-A
In the Books of _______________

Date

Question 17

Q.No.17 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 17 Chapter 4 of +2-A
17. A, B and C who are presently sharing profits and losses in the ratio of 5 : 3 : 2 decide to share future profits and losses in the ratio of 2 : 3 : 5. Give the journal entry to distribute Investments Fluctuation Reserve' of 20,000 at the time of change in profit-sharing ratio, when investment market value 95, 000 appears in the books at 1,00,000.
The solution of Question 17 Chapter 4 of +2-A
In the Books of _______________

Date
Particulars
L.F.
Debit
Credit

Question 18

Q.No.18 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 18 Chapter 4 of +2-A
18. Nitin, Tarun and Amar are partners sharing profits equally and decide to share profits in the ratio of 2 : 2 : 1 w.e.f. 1st April, 2019. The extract of their Balance Sheet as at 31st March, 2019 is as follows:

Liabilities
 
Assets

Investments Fluctuation Reserve
60,000
Investments (At Cost)
4,00,000

Pass the Journal entries in each of the following situations:

When its Market Value is not given;
When its Market Value is 4,00,000;
When its Market Valu

Question 19

Q.No.19 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 19 Chapter 4 of +2-A
19. X and Y are partners sharing profits in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet showed General Reserve of 60,000. It was decided that in future they will share profits and losses in the ratio of 3 : 2. Pass necessary Journal entry in each of the following alternative cases:

When General Reserve is not to be shown in the new Balance Sheet.
When General Reserve is to be shown in the new Balance Sheet.

The solution of Question 19 Chapter 4 o

Question 20

Q.No.20 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 20 Chapter 4 of +2-A
20. Bhavya and Sakshi are partners in a firm, sharing profits and losses in the ratio of 3 : 2. On 31st March, 2018 their Balance Sheet was as under:

Liabilities
 
Assets

Sundry Creditors 
13,800
Furniture 
16,000

General Reserve
23,400
Land and Building
56,000

Investment Fluctuation Fund
20,000
Investments
30,000

Bhavya's Capital 
50,000
Receivables
18,500

Sakshi's Capital
40,000
Cash in Hand 
26,700

1,47,200
 
1,47,200

The partners have de

=	(-)1	Gaining
			14

=	1	Sacrificing
			14

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

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Q.No.1 | 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 01 Chapter 4 of +2-A:

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

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

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

Q.No.2 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.3 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

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

Q.No.5 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.6 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.7 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.8 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.9 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.10 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

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