CHENNAI PUBLIC SCHOOL
Anna Nagar Chennai -600 101
ACCOUNTANCY(055)
WORK SHEET
Class XII Date
Name Roll No.
Max.Marks Duration
Change in Profit Sharing Ratio among partners
1. Kavin and Varun are partners in a firm sharing profits in the ratio of 4:3. On March 31st, 2022 their 3
Balance Sheet showed a General Reserve of Rs.70,000. On that date they decided to admit Suhail as a
new partner and the new profit-sharing ratio will be 5:3:2. Record necessary journal entries in the books
of the firm under the following circumstances:
(i) When they want to transfer the general reserve to their capital accounts.
(ii) When they don’t want to transfer general reserve in their capital accounts but prefer to
record an adjustment entry for the same.
2. Amirtha, Vani and Kavitha were partners in a firm. From 1st April, 2018 they decided to share the profits 3
in the ratio of 2:3:5. On this date the Balance Sheet of the firm showed a (Cr) balance of Rs.1,20,000 in
Profit and Loss Account. The Goodwill of the firm was valued at Rs.3,60,000. Partners do not want to
distribute the profit but prefer to record the change in the profit sharing ratio by passing an adjustment
entry. You are required to give the adjusting entry.
3. Akshat, Kalash and Kushal sharing profits and losses in the ratio of 2:3:5, with effect from 1st April, 2022 4
partners decided to share profits and losses in the ratio of 1:2:2. On this date, the Balance sheet showed
a credit balance of Rs.1,50,000 in General Reserve and a debit balance of Rs.35,000 in Profit and Loss
account. The goodwill of the firm was valued at Rs.2,50,000. The Revalution of assets and reassessment
of liabilities resulted into a gain of Rs.80,000.
Pass necessary journal entries for the above transactions on the reconstitution of the firm.
4. Mohan, Gopal and Mahesh were partners sharing profits and losses in the ratio of 5: 3:2. with effect 4
from 1st April, 2019 they mutually agreed to share the profits and losses in the ratio of 2:2:1. On that
date, there was a Workmen Compensation Reserve of Rs.90,000 in the books of the firm. It was agreed
that:
i) claim for workmen’s compensation amounted to Rs.60,000 .
ii)Goodwill of the firm be valued at Rs.70,000.
iii) Loss on revalution of assets and reassessment of liabilities amounted to Rs. 40,000
Pass the necessary journal entries for the above transactions in the books of the firm .
6
5. Pranav,Kesav and Aadi are in partnership sharing profits and losses in the ratio of 5:4:3 . On31
March2019,their balance sheet was as follows :
Liabilities Rs Assets Rs
Sundry creditors 1,50,000 Cash at Bank 1,40,000
Outstanding Expenses 5,000 Sundry Debtors 2,10,000
General Reserve
75,000 Stock 3,00,000
Bills Payable
50,000 Furniture 60,000
Capital Accounts:
Pranav 200,000 Plant and Machinery 4,20,000
Kesav 3,00,000 Patents 50,000
Aadi 4,00,000
9,00,000
11,80,000 11,80,000
It was decided that with effect from 1st April 2019, the profit sharing ratio will be 4:3:2 For thispurpose
the following revalution were to be made :
(i) Furniture be taken at 80 % of its value
(ii) Stock be appreciated by20%
(iii) Plant and machinery be valued at Rs. 4,00,000.
(iv) Create a provision for doubtful debts for Rs. 10,000 on debtors.
(v) Outstanding expenses be increased by Rs.3,000
Partners agreed that alterd values are not to be recorded in the books and they also do not want
To distribute the general reserve.
You are required to post a single journal entry to give effect to the above . Also prepare the
revised Balance Sheet.
THE END
