Question 1

Question 01 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 01 Chapter 4 of +2-Part-1
1. (NPS/ Sacrifice and Gain) A and B were partners in a firm sharing profits in the ratio of 3:2, with effect from 1st January, they agreed to share profits equally. For this purpose, the goodwill of the firm was valued at Rs.30,000. Calculate sacrifice/gain.
The solution of Question 01 Chapter 4 of +2 Part-1: - 
https://youtu.be/YrTj07mccrs?si=zNx6v7dWgT-etx67

Old Ratio of A & B
=
3: 2

New Ratio of A & B
=
1: 1

Calculate the Sacrificing or Gai

Question 2

Question 02 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 02 Chapter 4 of +2-Part-1
2. (NPS/ Sacrifice and Gain) A, B and C are partners in 2:1:3 ratio. The new ratio will be 5:3:2. Calculate the gain or sacrifice of each partner on the change in profit ratio.
The solution of Question 02 Chapter 4 of +2 Part-1: - 
https://youtu.be/YrTj07mccrs?si=NF7clbzeHeT7RBwq&t=169

Old Ratio of A, B & C
=
2: 1 : 3

New Ratio of A, B & C
=
5 : 3: 2

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

Question 3

Question 03 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 03 Chapter 4 of +2-Part-1
3. (NPS/ Sacrifice and Gain) A, B and C are partners in 3:7:5 ratio. They decided to change their ratio as follows. A gave 1/15 from his share to C. B gave 2/15 from his share to A and 1/15 to C.Find out new ratio and gain or sacrifice of each partner.
The solution of Question 03 Chapter 4 of +2 Part-1: - 
https://youtu.be/YrTj07mccrs?si=2lTDdq0noLFeN2QD&t=337
Calculate the A, B, & C New Profit sharing ratio: -

A’s New Share
=
3
-
1
+
2

15
15
15

Question 4

Question 04 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 04 Chapter 4 of +2-Part-1
4. (Goodwill doesn’t exist) X, Y and Z are partners sharing profits in 5:3:2 ratio. From 1st January 2016, they decide to share profits and losses in 2:5:3 ratio. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill is valued at Rs.54,000. Give the necessary single adjusting entry to record the above transaction.
The solution of Question 04 Chapter 4 of +2 Part-1: - 
https://youtu.be/YrTj07mccrs?si=tuz4HZDc41ZHOgV

Question 5

Question 05 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 05 Chapter 4 of +2-Part-1
5. (Goodwill exist in the balance sheet) P, Q and R are partners in 4:3:3 ratio. The new ratio is 1:2:2. Goodwill already in the books Rs.75,000 and at the time of change in ratio it is valued at Rs.1,05,000. Pass entries in journal:
The solution of Question 05 Chapter 4 of +2 Part-1: -
https://youtu.be/YrTj07mccrs?si=N-LtG1JGfK1f__Ri&t=834
Journal

Date
Particulars
L.F.
Debit
Credit

(1)
P’s Capital A/c (75000*4/10)
Dr.
 
30,000

Q’

Question 6

Question 06 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 06 Chapter 4 of +2- Part-1
6. (Different cases of treatment of Goodwill) X, Y and Z who are presently sharing profits and losses in the ratio of 5:3:2 decide to share future profits equally with effect from 1st April 2016. The goodwill of the firm has been valued at Rs.1,08,000. Show the necessary accounting treatment under each of the following alternative cases:

When no goodwill appears in the books.
When goodwill appears in the books at Rs.1,08,000.
When goodwill appears in the boo

Question 7

Question 07 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 07 Chapter 4 of +2-Part-1
7. (Profit and loss account not closed) X and Y are partners in 4:1 ratio. They had Rs.40,000 in profit and loss a/c. Their future ratio will be 2:3. They decided not to close the profit and loss account. You are required to pass necessary adjustment entry.
The solution of Question 07 Chapter 4 of +2 Part-1: - 
https://youtu.be/3CTGi8ZexbQ?si=bp9cW-JYglkQUfqo
Journal

Date
Particulars
L.F.
Debit
Credit

Y's Capital A/c
Dr.
 
16,000

To

Question 8

Question 08 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 08 Chapter 4 of +2-Part-1
8. (Profit and loss account/ Reserve are closed) P and Q are partners in 2:1 ratio. They have decided to share the profit in 3:2 ratio. They have Rs.60,000 in profit and loss a/c and Rs.18,000 in General Reserve. They decided to distribute profits and reserve before changing their ratio. Pass adjustment.
The solution of Question 08 Chapter 4 of +2 Part-1: - 
https://youtu.be/3CTGi8ZexbQ?si=bp9cW-JYglkQUfqo
Distribution of profit and general reserve on reconsti

Question 9

Question 09 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 09 Chapter 4 of +2-Part-1
9. (Profit and loss account/ Reserve are not closed) A, B and C are partners in 2 : 3 : 3 ratio. On 31st December they had Rs. 80,000 in Profit and Loss account and Rs.24,000 in general reserve. They decided to share profits in future in 2 : 2 : 1 ratio.You are required to pass entry in the books without closing the existing accounts.
The solution of Question 09 Chapter 4 of +2 Part-1: - 
https://youtu.be/3CTGi8ZexbQ?si=bp9cW-JYglkQUfqo

Distribution of prof

Question 10

Question 10 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 10 Chapter 4 of +2-Part-1
10. (Distribution of Profit and loss account) Sita and Geeta share the profit in 3:2 ratio. On 1st April 2016, the P & L a/c (debit) showed Rs.50,000. They changed their profit sharing ratio to 2:1 but before this change, they distributed the balance in profit and loss a/c. Pass journal entry.
The solution of Question 10 Chapter 4 of +2 Part-1: - 
https://youtu.be/3CTGi8ZexbQ?si=bp9cW-JYglkQUfqo
Journal

Date
Particulars
L.F.
Debit
Credit

Question 11

Question 11 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 11 Chapter 4 of +2-Part-1
11. (Profit and loss account/ General Reserve are given) A B and C are partners in 2:3:3 ratio. On 31st December they had Rs. 80,000 in Profit and Loss account and Rs.24,000 in general reserve. They decided to share profits in future in 2:2:1 ratio.You are required to pass entry in the books without closing the existing accounts.
The solution of Question 11 Chapter 4 of +2 Part-1: - 
https://youtu.be/3CTGi8ZexbQ?si=bp9cW-JYglkQUfqo
Distribution of profit and g

Question 12

Question 12 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 12 Chapter 4 of +2-Part-1
12. (Different Cases) A B and C are partners in 2:2:1 ratio. They admitted D into the firm for 1/5 share. They had Rs.60,000 in profit and loss account. Record the necessary journal entries in the books of the firm under the following circumstances:

When the profit and loss account is closed.
When profit and loss account is not closed and only adjustment entry is passed.

The solution of Question 12 Chapter 4 of +2 Part-1: - 
https://youtu.be/3CTGi8ZexbQ?si=b

Question 13

Question 13 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 13 Chapter 4 of +2-Part-1
13. (Distribution of old Reserves) A and B share profits in 5:3 ratio. On 31st March, 2018 they had Rs.20,000 in general reserve and Rs.8,000 in (Dr.) Profit and loss a/c. The new ratio with effect from 1st April 2018 will be 3:2. It was decided by partners that before bringing new ratio into force the old ratio (Dr.) and general reserve should be distributed.Journalise.
The solution of Question 13 Chapter 4 of +2 Part-1: - 
https://youtu.be/3CTGi8ZexbQ?si=bp9

Question 14

Question 14 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 14 Chapter 4 of +2-Part-1
14. (Different Cases) A and B are partners in 2:1 ratio. They had Rs.10,000 in deferred advertisement account and Rs.11,000 in (Dr.) profit and loss account. Show the adjustment under the following cases when their new ratio is agreed to eb 3:2.

When relevant accounts are closed.
When relevant accounts are not closed.

The solution of Question 14 Chapter 4 of +2 Part-1: - 
https://youtu.be/3CTGi8ZexbQ?si=bp9cW-JYglkQUfqo
(a) When relevant aaccounts are closed

Question 15

Question 15 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 15 Chapter 4 of +2-Part-1
15. (Balances appearing in B/S ) A, B and C are partners in 4:3:2 ratio. They decided to share the profits in the ratio of 3:2:1. On that date, the following balances were appearing in the balance sheet.

Profit & Loss (Cr.)
25,000

General Reserve
60,000

Deferred Revenue Expenditure
20,000

Pass the journal entries.
The solution of Question 15 Chapter 4 of +2 Part-1: - 
https://youtu.be/qGu8oy0exvY?si=6WrxpB5kLSBOh5bZ
In the Books of A, B and C

Question 16

Question 16 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 16 Chapter 4 of +2-Part-1
16. (Comprehensive Illustration) X and Y are in partnership, sharing profits in 2:3 ratio. With effect from 1st April 2019, they agreed to share profits in the ratio of 1:2. For this purpose, the goodwill of the firm is to be valued at two years purchase of the average profits of the last three years, which were Rs.75,000, Rs.80,000 and Rs.1,00,000 respectively. The reserve appears in the books at Rs.55,000. Partners neither want to show the goodwill in the bo

Question 17

Question 17 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 17 Chapter 4 of +2-Part-1
17. (Comprehensive Illustration) X,Y and Z are sharing profits and losses in 5:3:2 ratio. They agreed to share 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 effecting their book figures by passing a single entry.

Book figures (in Rs.)

General Reserve
6,000

Profit & Loss account
24,000

Advertisement Suspense account

Question 18

Question 18 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 18 Chapter 4 of +2-Part-1
18. (Treatment of Workmen Compensation Reserve) X, Y and Z are partners in 2:3:1 ratio. The new ratio will be 1:2:3. Extract of the balance sheet was followed:

Liabilities
Amount

Workmen Compensation Reserve
30,000

Show accounting treatment in each of the following:

If there is no other information .
If a claim on account of workmen compensation in due Rs.6,000.
If a claim on account of workmen compensation in due Rs.33,000.

The solution of Question

Question 19

Question 19 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 19 Chapter 4 of +2-Part-1
19. (Revaluation entries) X and Y share profits in 6:7 ratio. The future ratio will be 4:3 from 1st April 2018. They have decided to make a revaluation of assets and liabilities by passing revaluation entries before bringing into force the new ratio.The following is the position of assets on 1st April 2018 with their revised values

Book Value
 Revised Value

Building
50,000
55,200

Machinery
25,000
22,400

Creditors
28,000
29,300

Stock
29,000
32,900

Question 20

Question 20 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 20 Chapter 4 of +2-Part-1
20. (Revaluation account) A, B and C are partners in 3:2:1 ratio. On 31st March, 2018 the following revaluation were made:Furniture Rs.25,000, revalued at Rs.22,000; Stock Rs.10,000, revalued at Rs.4,000; Debtors Rs.40,000, Provision required for doubtful debts @10%. Unrecorded liabilities Rs.1,000.General Reserve was Rs.12,000. The partners have decided to change the ratio. The new ratio will be equal. General Reserve account is not to be closed.Pass journal

USHA Publication +2 Part 1 Solutions Chapter No. 4 - Partnership Accounts – III (Reconstitution of Partnership)

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Question 01 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

The solution of Question 01 Chapter 4 of +2 Part-1: -

Question 02 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 03 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 04 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 05 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 06 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 07 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 08 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 09 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 10 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 11 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 12 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 13 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 14 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 15 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 16 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 17 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 18 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 19 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 20 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 21 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 22 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 23 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 24 Chapter 4 of USHA Publication 12 Class Part - 1

Question 25 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Parat - 1

Question 26 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Parat - 1

Sarbjit SinghB.Com and M.Com

=	1	(Sacrifice)
			10

B’s Sacrificing/Gaining Share	=	2	-	1
		5		2

=	-1	(Gaining)
			10