Determination of Sacrifice and Gain
1. A, Band Care partners sharing profits and losses in the ratio of 5:4:3. They decided to change
their profit-sharing ratio to 2:2:1with effect from March 31, 2017. Calculate sacrifice and gain for
all the three partners. {A's Sacrifice = so; B's Gain = %0; C's Sacrifice =6o}
2. X,Y and Zare partners sharing profits and losses in the ratio of 3:1:1. With effect from January 1,
2017, they decided to change their profit-sharing ratio to 2:1:1.Calculate sacrifice and gain ofthe
partners.
(X's Sacrifice =0; Y's Gain = Váo; Z's Gain = V2o}
3. A, B,Cand Dare partners sharing profits and losses equally. They decided to share future profits
in the ratioof 4:3:2:1.Calculate sacrifice and gain of all the four partners.
{A's Gain=%0; B's Gain = ho; C's Sacrifice = ho, D's Sacrifice =ho}
4. A, B, and C were partners sharing profits in the ratio of 5:3:2. They now decide to change their
profit-sharing ratio to 3:2:1.Compute sacrifice and gain of the partners.
(A's Gain and Sacrifice = 0; B's Gain = so; C's Sacrifice = %o}
5. X, Yand Z are partners sharing profits and losses in the ratio of 3:2:1.It wasdecided that in future Z
willget 4th share in profit. Calculate the new profit-sharing ratio and sacrifice/gain of the partners.
(New Profit-Sharing Ratio: 9:6:5; X's Sacrifice =%o; Y's Sacrifice =%o; Z's Gain = S60)
6. Amit,Sumit and Namit are partners sharing protits and losSses in the ratio of 4:3:2. They agreed that
in future, Sumit will get h share in profit. Calculate the new profit-sharing ratio and sacrifice/gain
of the partners.
(New Profit-SharingRatio: 8:3:4; Amit's Gain =4s, Sumit's Sacrifice=%5; Namit's Gain =s)
7. X,Yand Zare partners sharing profits and losses in the ratio of 3:2:1. It was decided that in future
Z willget ah share in proit, which he acquires trom Xand Yin the ratio of 1:1 Calculate the new
profit-sharing ratio and sacrifice/gain of the partners.
INew Profit-Sharing Ratio: 11:7:6, X'S Sacrifice= 24; Y's Sacrifice= h4; Z's Gain = 3ha)
3.48
Accountancy for Class Xl
8. Mohan, Sohan and Rohan are partners sharing profits and losses in the ratio of 5:3:2. It was decid..
that in future Rohan will get 4th share in profit,which he acquires from Mohan and Sohan in t
ratio of 3:2 Calculate the new profit-sharing ratio and sacrifice/gain of the partners.
{New Profit-Sharing Ratio: 47:28:25; Mohan's Sacrifice - 33.
Sohan's Sacrifice=oo; Rohan's Gain =/00
9. A, B and C are partners sharing profits and losses in the ratio of 2:2:1. As per the new agreement
Cacquires Vh share in profit, equally from Aand B. Calculate the new profit-sharing ratio and
sacrifice or gain of each partner.
{New Profit-Sharing ratio: 3:3:4; A's Sacrifice = ho; B's Sacrifice = ho; C's Gain
10. Ram, Shyam and Hari are partners sharing profits and osses in the ratio of 3:2:1. As per the new
agreement, Hari acquires V4h share in profit, equally from Ram and Shyam. Determine the new
ratio of partners and sacrifice/gain of each partner.
{New Profit-Sharing ratio:9:5:10; Ram's Sacrifice = 6; Shyam's Sacrifice = 6; Hari's Gain )
Treatment of Goodwill
11. Aand B are partners in afirm. They were sharing profits and losses in the ratioof
to share future profits and losses in the ratio of 3:5. Firm's goodwill was 5:3.They decided
valued at 88,000. Pass
necessary adjustment entry for goodwill.
{A's Sacrifice =6,; B's Gain=6; Dr. B's Capital A/c by 22,000 (=% of 88,000)
and Cr. A's Capital A/c by 22,000}
12. Ram and Shyam are partners sharing profits and losses in the
ratio of 3:1. On 1st January 2017,
they decided to share future profits and losses in the ratio of 5:3. Goodwill of the firm was valued
at 64,000. Pass necessary journal entry for the
treatment of goodwill.
{Ram's Sacrifice = V6; Shyam's Gain = 6; Dr. Shyam's Capital Alc by
8,000 (= % of 64,000) and Cr. Ram's CapitalAlc by 8,000)
13. A, B and C were partners in a firm sharing profits in 3:2:1 ratio. They
in future in 5:3:2 ratio. For this purpose, the goodwill of the decided to share the profits
firm was valued at 60,000. Pass an
adjustment entry for the treatment of goodwill. {CBSE, All India(Comptt.) 2000}
{A's Sacrifice or Gain = 0; B's Sacrifice = so; C's Gain= so; Dr. C's Capital AlC
by 2,000 (= Vso of 60,000); Cr. B's Capital A/c by 2,000}
14. A, B and C are partners in a firm sharing profits and losses in
the ratio of 3:2:1. In future, they
decided to share profits in the ratio of 6:5:2. For this purpose, the goodwill of the firm was valued at
78,000. Pass necessary journal entry for the treatment of goodwilldue to change in profit-sharing
ratio. Also, show your workings clearly.
{A's Sacrifice =8; B's Gain e; C's Sacrifice= he: Dr. B's Capital A/c by
(= ho of 78,000); Cr. A's Capital A/c by 73,000; Cr. C's Capital 4,000
A/c by 1,000}
15. Tvisha and Divya were partners in a firm carrying on a tiffin service in
that a lot of food is left at the end of the day. To avoid Hyderabad. Divya noticeu
be distributed among the needy. Tvisha wanted it to be wastage, she suggested that the sâme hiey
mixed with the food to be served the ne
day.
Tvisha then gave a proposal that if her share in the profit is increased, she will not mina lo
distribution of left over food. Divya happily agreed. So, they decided to change their profit shag
ratio to 3:2 with immediate effect. On the date of change in
the firm was valued at 50,000. the profit-sharing ratio, the gooawi
(a) Pass the necessary adjustment entry for the
treatment of goodwill.
(b) State any two values highlighted in the behaviour of Tvisha and Divya.
(CBSE, Delhi Comptt. 2017)
{a) Dr. Divya's Capital Alcand Cr. Tvistha's Capital A/c by 5,000; (b) Values (Any
Compassion, Sensitivity towards underprivileged, Optimum utilisa
Of resources, Concern for sociely?
Change in Profit-Sharing Ratio 3,49
16, A, B,C and D are partners in a firm sharing profits and
from 1s April, 2017, they decided to share future losses in the ratio of 2:1:2:1.With erect
profits and
firm was valued at 2 years' purchase of average profits of lastlosses
three
equally. The goodwIll OT ne
Z45,000 and ? 60,000 respectively. Pass years which were ? 75,000,
necessary
(Goodwill = 1,20,000; A's Sacrifice = i2: B'sadjustment
for goodwill.
Gain = y2: C's Sacrifice = h2; D'sGain = M2;
Dr. B's Capital Alc by 10,000 (= h2 of R1,20,000): Dr. D's
Capital Alc by ? 10,000;
Cr. A's Capital A/c by ? 10,000and Cr. C's Capital A/c by ? 10,000}
17. A, B and C are partners sharing profits and losses in ratio of
was decided to change the profit sharing ratio to 4:3:2. 3:2:1.With effect from 1s April, 2017, t
Goodwill is to
average of 3 years' profit. The profits were: 95,000, 85,000 and be valued at 2 years' purchase of
entry for goodwill without opening goodwill account assuming that 90,000. Pass necessary jOumal
the firm adopted fixed capital method.
(Goodwill = 1,80,000; A's Sacrifice = he; B's Sacrifice or Gain = 0;
C's
Current Alcby 10,000 (= he of 1,80,000); Cr. A's CurrentGain= A/c by
he; Dr. C's
? 10,000}
18. A, B and C are partners sharing profits and losses in
the ratio of 5:3:2. They now decided to share
future profits and losses equally. The goodwill of the firm has
is already appearing in the books at been valued at90,000. Goodwill
40,000. Show the necessary Journal Entries, assuming no
goodwill willappear in the books of accounts.
{Write off existing goodwill of 40,000 among A, Band C in 5:3:2;
20,000, Dr. B's Capital Ac by ? 12,000, Dr. C's Capital i.e. Dr. A's Capital A/c by
Alc by 8,000and Cr. Goodwill Ac
by 40,000; Gain/Sacrifice: A's Sacrifice =%o; B's Gain =
V%0;
Dr. B'sCapital A/c by 3,000 (= %o of R90,000); Dr. C's C's Gain = Y%0;
I 12,000 and Cr. A's Capital A/c by
Capital A/c by
Treatment of Accumulated Reserves and Surplus 15,000}
19. X and Yare partners in a firm sharing profits and
losses in the
2017, they decided to share future profits equally. On the date ratio of
of 3:2.With effect from 4st April,
the profit and loss account showed a credit change in the profit-sharing ratio,
balance
for the distribution of the balance in the Profit and
of 30,000.Record the necessary
Journal Entry
Loss Account immediately before the change in
the profit-sharing ratio.
(Dr. Profit and Loss A/c by30,000; Cr. X's
Capital Alc by 18, 000 (= % of ? 30,000):
Cr. Y's Capital Alcby 12,000(= 3%
20. Ankit and Namit are partners in a firm of? 30,000))
sharing profits and losses in the ratio of 3:2. They decided
to share future profits equally. On the date of
Loss Account showed a debit balance of 10,000 and change in the profit sharing ratio, the Profit and
General Reserve of 40,000. Record the
necessary Journal Entries for the distribution of the balance in the Profit and
General Reserve before the change in the profit sharing Loss Account and
ratio.
(2 Journal Entries: () Cr. Profit and LOss
A/c by ? 10,000 and Dr.
(=% of 10,000) and Namit's Capital Alc by ?4,000Ankit's (i)
Capital Alc by 6,000
by 40,000 and C. Ankit's Capital Alcby Dr. General Reserve A/c
24,000 (=% of40,000)
and Cr. Namit's Capital A/c by ?
21. X,Y and Z are partners sharingprofits and 16,000}
2017, they decidedto share profits and losseslosses
in the ratio of 5:3:2. With effect from 1st
in the ratio of 2:2:1.On that date, their April.
showed the following balances: Balance Sheet
Profit and Loss (Dr.) )
General Reserve 25,000
Workmen Compensation Reserve 50,000
Advertisernent Suspense Alc 5,000
Pass necessary Journal Entries. 10,000
3.50 Accountancy for Class XI
(2 Journal Entries: () Cr. Profit and Loss A/c by 25,000; Cr. Advertisement
Suspense Alc by
?10,000 and Dr. X's Capital A/c by 17,500 (=ho of 35,000), Dr. Y's Capital
Alc by
10,500 and Dr. Z's Capital A/c 7,000. (1) Dr. Goneral Reserve A/c by
50,000;
Dr. Workmen Compensation Reserve Alc by 5,000 and Cr. X's Capital Ac
by 27,500 (= ho of ?55,000); Cr. Y's Capital A/c by
Cr. Z's Capital A/c by16,500 and
11,000)
Note: ()As nothing is mentioned about the treatment of accumulated reserves and lossos,
they willbe distributed among the partners in the old ratio. () Workmen compensation reserve
will also be distributed among the partners as in the absence of any spsclfic information, it is
assumed that there ls no expected lability for workmen compensation.
22. Aand Bwere partners sharing profits and losses in the ratio of 2:1.On 31 December, 2016, their
Balance Sheet showed a general reserve of R60,000. It was decided that in future they will share
profits and losses in the ralio of 3:2. Pass necessary journal entry in each of the following alternalive
Cases:
() Ifthey do not want to show general reserve in the new Balance Sheet.
(i) Ifthey want to show general reserve in the new Balance Sheet.
{) Dr. General Reserve A/c by ?60,000; Cr. A's Capital Alc by40,000 (=% of R60,000);
Cr.B's Capital A/c by 20,000 (= ó of R60,000): () A's Sacrifice = hs; B's Gain =hs;
Dr. B's Capital A/c by 4,000 (= Vs of R60,000) and Cr. A's Capital Alc by 4,000)
Comprehensive Questions
