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Page No 3.22:
Question 1:
Answer:
Old Ratio (A and B) = 1 : 1
New Ratio (A and B) = 4 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ A’s Gain = 1/14
B’s Sacrifice = 1/14
Page No 3.22:
Question 2:
Old Ratio (A and B) = 1 : 1
New Ratio (A and B) = 4 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ A’s Gain = 1/14
B’s Sacrifice = 1/14
Answer:
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 5 : 2 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ Z’s Gain = 1/10
Y’s Sacrifice = 1/10
Page No 3.22:
Question 3:
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 5 : 2 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ Z’s Gain = 1/10
Y’s Sacrifice = 1/10
Answer:
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ Y’s Gain = 1/30
Z’s Gain = 4/30
X’s Sacrifice = 5/30
Page No 3.22:
Question 4:
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ Y’s Gain = 1/30
Z’s Gain = 4/30
X’s Sacrifice = 5/30
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
C’s Capital A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
|
3,000 |
|
(Adjustment of goodwill made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
Old Ratio (A, B and C) = 3 : 2 : 1
New Ratio (A, B and C) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Goodwill of the firm = Rs 18,000
A will receive for goodwill =
C will give for goodwill =
Page No 3.22:
Question 5:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
C’s Capital A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
|
3,000 |
|
(Adjustment of goodwill made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
Old Ratio (A, B and C) = 3 : 2 : 1
New Ratio (A, B and C) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Goodwill of the firm = Rs 18,000
A will receive for goodwill =
C will give for goodwill =
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Y’s Capital A/c |
Dr. |
|
3,000 |
|
|
Z’s Capital A/c |
Dr. |
|
12,000 |
|
|
To X’s Capital A/c |
|
|
|
15,000 |
|
(Amount of goodwill adjusted on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Calculation of Goodwill
WN 3 Adjustment of Goodwill
Page No 3.22:
Question 6:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Y’s Capital A/c |
Dr. |
|
3,000 |
|
|
Z’s Capital A/c |
Dr. |
|
12,000 |
|
|
To X’s Capital A/c |
|
|
|
15,000 |
|
(Amount of goodwill adjusted on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Calculation of Goodwill
WN 3 Adjustment of Goodwill
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
X’s Capital A/c |
Dr. |
|
6,000 |
|
|
Y’s Capital A/c |
Dr. |
|
3,600 |
|
|
Z’s Capital A/c |
Dr. |
|
2,400 |
|
|
To Goodwill A/c |
|
|
|
12,000 |
|
(Goodwill written off) |
|
|
|
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr. |
|
1,000 |
|
|
Z’s Capital A/c |
Dr. |
|
4,000 |
|
|
To X’s Capital A/c |
|
|
5,000 |
|
|
(Amount of goodwill adjusted on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Writing off of Old Goodwill
WN 3 Adjustment of Goodwill
Page No 3.22:
Question 7:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
X’s Capital A/c |
Dr. |
|
6,000 |
|
|
Y’s Capital A/c |
Dr. |
|
3,600 |
|
|
Z’s Capital A/c |
Dr. |
|
2,400 |
|
|
To Goodwill A/c |
|
|
|
12,000 |
|
(Goodwill written off) |
|
|
|
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr. |
|
1,000 |
|
|
Z’s Capital A/c |
Dr. |
|
4,000 |
|
|
To X’s Capital A/c |
|
|
5,000 |
|
|
(Amount of goodwill adjusted on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Writing off of Old Goodwill
WN 3 Adjustment of Goodwill
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
6,000 |
|
|
To B’s Capital A/c |
|
|
6,000 |
|
|
(Adjustment of profit for 2014 on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c |
Dr. |
|
9,000 |
|
|
To A’s Capital A/c |
|
|
9,000 |
|
|
(Adjustment of goodwill made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
|
|
|
Cr. |
Particulars |
A Rs |
B Rs |
Particulars |
A Rs |
B Rs |
B's Capital A/c |
6,000 |
– |
Balance b/d |
1,50,000 |
90,000 |
(Adjustment of profit) |
|
|
A's Capital A/c |
– |
6,000 |
A's Capital A/c |
– |
9,000 |
(Adjustment Profit) |
|
|
(Adjustment of Goodwill) |
|
|
B's Capital A/c |
9,000 |
– |
Balance c/d |
1,53,000 |
87,000 |
(Adjustment of Goodwill) |
|
|
|
1,59,000 |
96,000 |
|
1,59,000 |
96,000 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 2 : 1
New Ratio (A and B) = 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of Profit for 2014
WN 3 Calculation of New Goodwill
WN 4 Adjustment of Goodwill
Page No 3.23:
Question 8:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
6,000 |
|
|
To B’s Capital A/c |
|
|
6,000 |
|
|
(Adjustment of profit for 2014 on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c |
Dr. |
|
9,000 |
|
|
To A’s Capital A/c |
|
|
9,000 |
|
|
(Adjustment of goodwill made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
|
|
|
Cr. |
Particulars |
A Rs |
B Rs |
Particulars |
A Rs |
B Rs |
B's Capital A/c |
6,000 |
– |
Balance b/d |
1,50,000 |
90,000 |
(Adjustment of profit) |
|
|
A's Capital A/c |
– |
6,000 |
A's Capital A/c |
– |
9,000 |
(Adjustment Profit) |
|
|
(Adjustment of Goodwill) |
|
|
B's Capital A/c |
9,000 |
– |
Balance c/d |
1,53,000 |
87,000 |
(Adjustment of Goodwill) |
|
|
|
1,59,000 |
96,000 |
|
1,59,000 |
96,000 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 2 : 1
New Ratio (A and B) = 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of Profit for 2014
WN 3 Calculation of New Goodwill
WN 4 Adjustment of Goodwill
Answer:
(a) When Partners want to transfer the General Reserve in their Capital Accounts.
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
General Reserve A/c |
Dr. |
|
54,000 |
|
|
To X’s Capital A/c |
|
|
|
32,400 |
|
To Y’s Capital A/c |
|
|
21,600 |
|
|
(General Reserve distributed) |
|
|
|
|
|
|
|
|
|
Working Notes:
Distribution of General Reserve (in old ratio)
(b) When Partners do not want to transfer the General Reserve in their Capital Accounts.
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Z’s Capital A/c |
Dr. |
|
12,000 |
|
|
To X’s Capital A/c |
|
|
|
8,400 |
|
To Y’s Capital A/c |
|
|
3,600 |
|
|
(General Reserve distributed) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X and Y) = 3 : 2
New Ratio (X, Y and Z) = 4 : 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ Sacrificing Ratio = 7 : 3
WN 2 Adjustment of General Reserve
Z’s Share in General Reserve =
This share is to be distributed between X and Y in their sacrificing ratio (i.e. 7 : 3).
Page No 3.23:
Question 9:
(a) When Partners want to transfer the General Reserve in their Capital Accounts.
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
General Reserve A/c |
Dr. |
|
54,000 |
|
|
To X’s Capital A/c |
|
|
|
32,400 |
|
To Y’s Capital A/c |
|
|
21,600 |
|
|
(General Reserve distributed) |
|
|
|
|
|
|
|
|
|
Working Notes:
Distribution of General Reserve (in old ratio)
(b) When Partners do not want to transfer the General Reserve in their Capital Accounts.
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Z’s Capital A/c |
Dr. |
|
12,000 |
|
|
To X’s Capital A/c |
|
|
|
8,400 |
|
To Y’s Capital A/c |
|
|
3,600 |
|
|
(General Reserve distributed) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X and Y) = 3 : 2
New Ratio (X, Y and Z) = 4 : 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ Sacrificing Ratio = 7 : 3
WN 2 Adjustment of General Reserve
Z’s Share in General Reserve =
This share is to be distributed between X and Y in their sacrificing ratio (i.e. 7 : 3).
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Y’s Capital A/c |
Dr. |
|
30,000 |
|
|
To X’s Capital A/c |
|
|
|
30,000 |
|
(Adjustment mode for goodwill and General Reserve) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Goodwill
WN 2 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X and Y) = 2 : 3
New Ratio (X and Y) = 1 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 3 Adjustment of Goodwill
WN 4 Adjustment of General Reserve
WN 5 Net Adjustment of Goodwill and General Reserve
Particulars |
X |
Y |
Adjustment of Goodwill |
22,667 (Cr.) |
22,667 (Dr.) |
Adjustment of General Reserve |
7,333 (Cr.) |
7,333 (Dr.) |
Net Amount |
30,000 (Cr.) |
30,000 (Dr.) |
|
|
|
Page No 3.23:
Question 10:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Y’s Capital A/c |
Dr. |
|
30,000 |
|
|
To X’s Capital A/c |
|
|
|
30,000 |
|
(Adjustment mode for goodwill and General Reserve) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Goodwill
WN 2 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X and Y) = 2 : 3
New Ratio (X and Y) = 1 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 3 Adjustment of Goodwill
WN 4 Adjustment of General Reserve
WN 5 Net Adjustment of Goodwill and General Reserve
Particulars |
X |
Y |
Adjustment of Goodwill |
22,667 (Cr.) |
22,667 (Dr.) |
Adjustment of General Reserve |
7,333 (Cr.) |
7,333 (Dr.) |
Net Amount |
30,000 (Cr.) |
30,000 (Dr.) |
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Z’s Capital A/c |
Dr. |
|
5,400 |
|
|
To X’s Capital A/c |
|
|
|
5,400 |
|
(Adjustment for General Reserve, Profit and Loss A/c and Advertisement Suspense account is made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1
WN 2 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 2 : 3 : 5
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Page No 3.23:
Question 11:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Z’s Capital A/c |
Dr. |
|
5,400 |
|
|
To X’s Capital A/c |
|
|
|
5,400 |
|
(Adjustment for General Reserve, Profit and Loss A/c and Advertisement Suspense account is made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1
WN 2 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 2 : 3 : 5
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Z’s Capital A/c |
Dr. |
|
760 |
|
|
To X’s Capital A/c |
|
|
|
760 |
|
(Adjustment of revaluation profit made) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Net Profit or Loss on Revaluation
Particulars |
Amount (Rs) |
Increase in Investment |
3,000 (Cr.) |
Decrease in Plant and Machinery |
(5,000) (Dr.) |
Increase in Land and Building |
10,000 (Cr.) |
Increase in Outstanding Expenses |
(400) (Dr.) |
Decrease in Sunday Debtors |
(10,000) (Dr.) |
Decrease in Trade Creditors |
10,000 (Cr.) |
Profit on Revaluation |
7,600 (Cr.) |
|
|
WN 2 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 4 : 3 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 3 Adjustment of Revaluation Profit
Page No 3.24:
Question 12:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Z’s Capital A/c |
Dr. |
|
760 |
|
|
To X’s Capital A/c |
|
|
|
760 |
|
(Adjustment of revaluation profit made) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Net Profit or Loss on Revaluation
Particulars |
Amount (Rs) |
Increase in Investment |
3,000 (Cr.) |
Decrease in Plant and Machinery |
(5,000) (Dr.) |
Increase in Land and Building |
10,000 (Cr.) |
Increase in Outstanding Expenses |
(400) (Dr.) |
Decrease in Sunday Debtors |
(10,000) (Dr.) |
Decrease in Trade Creditors |
10,000 (Cr.) |
Profit on Revaluation |
7,600 (Cr.) |
|
|
WN 2 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 4 : 3 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 3 Adjustment of Revaluation Profit
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
X’s Capital A/c |
Dr. |
|
15,000 |
|
|
Y’s Capital A/c |
Dr. |
|
5,000 |
|
|
To Z’s Capital A/c |
|
|
20,000 |
|
|
(Adjustment made for Goodwill, General Reserve and Profit and Loss Account on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Balance Sheet (after change in Profit Sharing Ratio) |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Capital A/c s: |
|
Sunday Assets |
7,00,000 |
|
X |
1,95,000 |
|
|
|
Y |
1,45,000 |
|
|
|
Z |
1,40,000 |
4,80,000 |
|
|
General Reserve |
65,000 |
|
|
|
Profit and Loss A/c |
25,000 |
|
|
|
Creditors |
1,30,000 |
|
|
|
|
7,00,000 |
|
7,00,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 7 : 5 : 4
New Ratio (X, Y and Z) = 3 : 2 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of General Reserve, Profit and Loss Account and Goodwill
Total Amount for Adjustment = General Reserve + Profit and Loss Account + Goodwill
= 65,000 + 25,000 + 1,50,000 = Rs 2,40,000
WN 3
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Z's Capital A/c |
15,000 |
5,000 |
– |
Balance b/d |
2,10,000 |
1,50,000 |
1,20,000 |
|
|
|
|
X's Capital A/c |
– |
– |
15,000 |
|
|
|
|
Y's Capital A/c |
– |
– |
5,000 |
Balance c/d |
1,95,000 |
1,45,000 |
1,40,000 |
|
|
|
|
|
2,10,000 |
1,50,000 |
1,40,000 |
|
2,10,000 |
1,50,000 |
1,40,000 |
|
|
|
|
|
|
|
|
Page No 3.24:
Question 13:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
X’s Capital A/c |
Dr. |
|
15,000 |
|
|
Y’s Capital A/c |
Dr. |
|
5,000 |
|
|
To Z’s Capital A/c |
|
|
20,000 |
|
|
(Adjustment made for Goodwill, General Reserve and Profit and Loss Account on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Balance Sheet (after change in Profit Sharing Ratio) |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Capital A/c s: |
|
Sunday Assets |
7,00,000 |
|
X |
1,95,000 |
|
|
|
Y |
1,45,000 |
|
|
|
Z |
1,40,000 |
4,80,000 |
|
|
General Reserve |
65,000 |
|
|
|
Profit and Loss A/c |
25,000 |
|
|
|
Creditors |
1,30,000 |
|
|
|
|
7,00,000 |
|
7,00,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 7 : 5 : 4
New Ratio (X, Y and Z) = 3 : 2 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of General Reserve, Profit and Loss Account and Goodwill
Total Amount for Adjustment = General Reserve + Profit and Loss Account + Goodwill
= 65,000 + 25,000 + 1,50,000 = Rs 2,40,000
WN 3
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Z's Capital A/c |
15,000 |
5,000 |
– |
Balance b/d |
2,10,000 |
1,50,000 |
1,20,000 |
|
|
|
|
X's Capital A/c |
– |
– |
15,000 |
|
|
|
|
Y's Capital A/c |
– |
– |
5,000 |
Balance c/d |
1,95,000 |
1,45,000 |
1,40,000 |
|
|
|
|
|
2,10,000 |
1,50,000 |
1,40,000 |
|
2,10,000 |
1,50,000 |
1,40,000 |
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
4,000 |
|
|
To B’s Capital A/c |
|
|
|
4,000 |
|
(Adjustment of General Reserve on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
A |
B |
Particulars |
A |
B |
|
B’s Capital A/c |
4,000 |
– |
Balance b/d |
2,40,000 |
1,20,000 |
|
(Adjustment of General Reserve) |
|
|
Revaluation (Profit) |
18,000 |
13,500 |
|
Balance c/d |
2,54,000 |
1,37,500 |
A’s Capital A/c |
– |
4,000 |
|
|
|
|
(Adjustment of General Reserve) |
|
|
|
|
2,58,000 |
1,37,500 |
|
2,58,000 |
1,37,500 |
|
|
|
|
|
|
|
Balance Sheet |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Sunday Creditors (28,000 –3,700) |
24,300 |
Cash |
20,000 |
||
General Reserve |
42,000 |
Sundry Debtors |
1,20,000 |
|
|
Capital Account |
|
Less: Provision for Doubtful Debts |
(7,200) |
1,12,800 |
|
A |
2,54,000 |
|
Stock |
1,90,000 |
|
B |
1,37,500 |
3,91,500 |
Fixed Assets (1,50,000 – 15,000) |
1,35,000 |
|
|
4,57,800 |
|
4,57,800 |
||
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 4 : 3
New Ratio (A and B) = 2 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of General Reserve
WN 3
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Fixed Assets |
15,000 |
Stock |
50,000 |
|
Provision for Doubtful Debts (1,20,000 × 6%) |
7,200 |
Creditors |
3,700 |
|
Profit transferred to: |
|
|
|
|
A’s Capital A/c |
18,000 |
|
|
|
B’s Capital A/c |
13,500 |
31,500 |
|
|
|
53,700 |
|
53,700 |
|
|
|
|
|
Page No 3.24:
Question 14:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
4,000 |
|
|
To B’s Capital A/c |
|
|
|
4,000 |
|
(Adjustment of General Reserve on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
A |
B |
Particulars |
A |
B |
|
B’s Capital A/c |
4,000 |
– |
Balance b/d |
2,40,000 |
1,20,000 |
|
(Adjustment of General Reserve) |
|
|
Revaluation (Profit) |
18,000 |
13,500 |
|
Balance c/d |
2,54,000 |
1,37,500 |
A’s Capital A/c |
– |
4,000 |
|
|
|
|
(Adjustment of General Reserve) |
|
|
|
|
2,58,000 |
1,37,500 |
|
2,58,000 |
1,37,500 |
|
|
|
|
|
|
|
Balance Sheet |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Sunday Creditors (28,000 –3,700) |
24,300 |
Cash |
20,000 |
||
General Reserve |
42,000 |
Sundry Debtors |
1,20,000 |
|
|
Capital Account |
|
Less: Provision for Doubtful Debts |
(7,200) |
1,12,800 |
|
A |
2,54,000 |
|
Stock |
1,90,000 |
|
B |
1,37,500 |
3,91,500 |
Fixed Assets (1,50,000 – 15,000) |
1,35,000 |
|
|
4,57,800 |
|
4,57,800 |
||
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 4 : 3
New Ratio (A and B) = 2 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of General Reserve
WN 3
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Fixed Assets |
15,000 |
Stock |
50,000 |
|
Provision for Doubtful Debts (1,20,000 × 6%) |
7,200 |
Creditors |
3,700 |
|
Profit transferred to: |
|
|
|
|
A’s Capital A/c |
18,000 |
|
|
|
B’s Capital A/c |
13,500 |
31,500 |
|
|
|
53,700 |
|
53,700 |
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
X's Capital A/c |
Dr. |
|
2,500 |
|
|
To Z's Capital A/c |
|
|
|
2,500 |
|
(Revaluation Profit and General Reserve adjusted on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Balance Sheet |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors |
40,000 |
Cash at Bank |
40,000 |
|
Outstanding Expenses |
15,000 |
Sundry Debtors |
2,10,000 |
|
General Reserve |
75,000 |
Stock |
3,00,000 |
|
Capital Accounts: |
|
Furniture |
60,000 |
|
X |
3,97,500 |
|
Plant and Machinery |
4,20,000 |
Y |
3,00,000 |
|
|
|
Z |
2,02,500 |
9,00,000 |
|
|
|
10,30,000 |
|
10,30,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 4 : 3
New Ratio (X, Y and Z) = 4 : 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Calculation of Profit or Loss on Revaluation
Particulars |
Amount (Rs) |
|
Increase in Stock |
60,000 |
(Cr.) |
Decrease Furniture |
(12,000) |
(Dr.) |
Decrease in Plant and Machinery |
(20,000) |
(Dr.) |
Increase in Outstanding Expenses |
(13,000) |
(Dr.) |
Profit on Revaluation |
15,000 |
(Cr.) |
|
|
|
WN 3 Adjustment of Profit on Revaluation and General Reserve
Amount for Adjustment = Profit on Revaluation + General Reserve
= 15,000 + 75,000 = Rs 90,000
WN 4
Partners’ Capital Accounts |
|||||||
Dr. |
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Z's Capital A/c |
2,500 |
– |
– |
Balance c/d |
4,00,000 |
3,00,000 |
2,00,000 |
|
|
|
|
X's Capital A/c |
– |
– |
2,500 |
Balance c/d |
3,97,500 |
3,00,000 |
2,02,500 |
|
|
|
|
|
4,00,000 |
3,00,000 |
2,02,500 |
|
4,00,000 |
3,00,000 |
2,02,500 |
|
|
|
|
|
|
|
|
Page No 3.25:
Question 15:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
X's Capital A/c |
Dr. |
|
2,500 |
|
|
To Z's Capital A/c |
|
|
|
2,500 |
|
(Revaluation Profit and General Reserve adjusted on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Balance Sheet |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors |
40,000 |
Cash at Bank |
40,000 |
|
Outstanding Expenses |
15,000 |
Sundry Debtors |
2,10,000 |
|
General Reserve |
75,000 |
Stock |
3,00,000 |
|
Capital Accounts: |
|
Furniture |
60,000 |
|
X |
3,97,500 |
|
Plant and Machinery |
4,20,000 |
Y |
3,00,000 |
|
|
|
Z |
2,02,500 |
9,00,000 |
|
|
|
10,30,000 |
|
10,30,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 5 : 4 : 3
New Ratio (X, Y and Z) = 4 : 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Calculation of Profit or Loss on Revaluation
Particulars |
Amount (Rs) |
|
Increase in Stock |
60,000 |
(Cr.) |
Decrease Furniture |
(12,000) |
(Dr.) |
Decrease in Plant and Machinery |
(20,000) |
(Dr.) |
Increase in Outstanding Expenses |
(13,000) |
(Dr.) |
Profit on Revaluation |
15,000 |
(Cr.) |
|
|
|
WN 3 Adjustment of Profit on Revaluation and General Reserve
Amount for Adjustment = Profit on Revaluation + General Reserve
= 15,000 + 75,000 = Rs 90,000
WN 4
Partners’ Capital Accounts |
|||||||
Dr. |
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Z's Capital A/c |
2,500 |
– |
– |
Balance c/d |
4,00,000 |
3,00,000 |
2,00,000 |
|
|
|
|
X's Capital A/c |
– |
– |
2,500 |
Balance c/d |
3,97,500 |
3,00,000 |
2,02,500 |
|
|
|
|
|
4,00,000 |
3,00,000 |
2,02,500 |
|
4,00,000 |
3,00,000 |
2,02,500 |
|
|
|
|
|
|
|
|
Answer:
Revaluation Account |
||||
Dr. |
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Machinery |
7,000 |
|
X’s Capital A/c |
5,000 |
|
Stock |
1,000 |
Y’s Capital A/c |
3,000 |
8,000 |
|
|
|
8,000 |
|
8,000 |
|
|
|
|
|
Partners’ Capital Account |
|||||
Dr. |
Cr. |
||||
Particulars |
X |
Y |
Particulars |
X |
Y |
Advertisement Suspense A/c |
500 |
300 |
Balance b/d |
52,000 |
54,000 |
Goodwill A/c |
5,000 |
3,000 |
General Reserve A/c |
3,000 |
1,800 |
X’s Capital |
- |
3,000 |
WCF |
2,500 |
1,500 |
(Adjustment of Goodwill) |
|
|
Revaluation A/c (Profit) |
5,000 |
3,000 |
|
|
|
Y’s Capital A/c |
3,000 |
- |
Balance c/d |
60,000 |
54,000 |
(Adjustment of Goodwill) |
|
|
|
|
|
|
|
|
|
65,500 |
60,300 |
|
65,500 |
60,300 |
|
|
|
|
|
|
Balance Sheet |
|||
as on April 01, 2012 (after change in Profit Sharing Ratio) |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
X’s Capital |
58,500 |
Machinery (38,000 + 7,000) |
45,000 |
Z’s Capital |
55,500 |
Furniture |
15,000 |
Sundry Creditors |
5,000 |
Sundry Debtors |
33,000 |
Employees’ Provident Fund |
1,000 |
Stock (7,000 + 1,000) |
8,000 |
Workmen’s Compensation Reserve |
6,000 |
Bank |
25,000 |
|
1,26,000 |
|
1,26,000 |
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X and Y) = 5 : 3
New Ratio (X and Y) = 3 : 5
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Calculation of New Goodwill
Goodwill = Average Profit × Number of Year′s Purchase = 6,000 × 2 = Rs 12,000
∴Goodwill = 6,000 × 2 = Rs 12,000
WN 3 Adjustment of Goodwill
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Workmen’s Compensation Reserve A/c |
Dr. |
|
10,000 |
|
|
To Workmen’s Compensation Claim A/c |
|
|
6,000 |
|
|
To X’s Capital A/c |
|
|
2,500 |
|
|
To Y’s Capital A/c |
|
|
1,500 |
|
|
(Workmen’s compensation claim distributed among partners in their old ratio i.e. 5 : 3) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
5,000 |
|
|
Y’s Capital A/c |
Dr. |
|
3,000 |
|
|
To Goodwill A/c |
|
|
8,000 |
|
|
(Goodwill written off among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
500 |
|
|
Y’s Capital A/c |
Dr. |
|
300 |
|
|
To Advertisement Suspense A/c |
|
|
800 |
|
|
(Advertisement Suspense written off among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
4,800 |
|
|
To X’s Capital A/c |
|
|
3,000 |
|
|
To Y’s Capital A/c |
|
|
1,800 |
|
|
(General Reserve distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
8,000 |
|
|
To X’s Capital A/c |
|
|
5,000 |
|
|
To Y’s Capital A/c |
|
|
3,000 |
|
|
(Revaluation profit distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr. |
|
3,000 |
|
|
To X’s Capital A/c |
|
|
3,000 |
|
|
(Adjustment of goodwill made) |
|
|
|
|
|
|
|
|
|
Page No 3.26:
Question 16:
Revaluation Account |
||||
Dr. |
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Machinery |
7,000 |
|
X’s Capital A/c |
5,000 |
|
Stock |
1,000 |
Y’s Capital A/c |
3,000 |
8,000 |
|
|
|
8,000 |
|
8,000 |
|
|
|
|
|
Partners’ Capital Account |
|||||
Dr. |
Cr. |
||||
Particulars |
X |
Y |
Particulars |
X |
Y |
Advertisement Suspense A/c |
500 |
300 |
Balance b/d |
52,000 |
54,000 |
Goodwill A/c |
5,000 |
3,000 |
General Reserve A/c |
3,000 |
1,800 |
X’s Capital |
- |
3,000 |
WCF |
2,500 |
1,500 |
(Adjustment of Goodwill) |
|
|
Revaluation A/c (Profit) |
5,000 |
3,000 |
|
|
|
Y’s Capital A/c |
3,000 |
- |
Balance c/d |
60,000 |
54,000 |
(Adjustment of Goodwill) |
|
|
|
|
|
|
|
|
|
65,500 |
60,300 |
|
65,500 |
60,300 |
|
|
|
|
|
|
Balance Sheet |
|||
as on April 01, 2012 (after change in Profit Sharing Ratio) |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
X’s Capital |
58,500 |
Machinery (38,000 + 7,000) |
45,000 |
Z’s Capital |
55,500 |
Furniture |
15,000 |
Sundry Creditors |
5,000 |
Sundry Debtors |
33,000 |
Employees’ Provident Fund |
1,000 |
Stock (7,000 + 1,000) |
8,000 |
Workmen’s Compensation Reserve |
6,000 |
Bank |
25,000 |
|
1,26,000 |
|
1,26,000 |
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X and Y) = 5 : 3
New Ratio (X and Y) = 3 : 5
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Calculation of New Goodwill
Goodwill = Average Profit × Number of Year′s Purchase = 6,000 × 2 = Rs 12,000
∴Goodwill = 6,000 × 2 = Rs 12,000
WN 3 Adjustment of Goodwill
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Workmen’s Compensation Reserve A/c |
Dr. |
|
10,000 |
|
|
To Workmen’s Compensation Claim A/c |
|
|
6,000 |
|
|
To X’s Capital A/c |
|
|
2,500 |
|
|
To Y’s Capital A/c |
|
|
1,500 |
|
|
(Workmen’s compensation claim distributed among partners in their old ratio i.e. 5 : 3) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
5,000 |
|
|
Y’s Capital A/c |
Dr. |
|
3,000 |
|
|
To Goodwill A/c |
|
|
8,000 |
|
|
(Goodwill written off among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
500 |
|
|
Y’s Capital A/c |
Dr. |
|
300 |
|
|
To Advertisement Suspense A/c |
|
|
800 |
|
|
(Advertisement Suspense written off among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
4,800 |
|
|
To X’s Capital A/c |
|
|
3,000 |
|
|
To Y’s Capital A/c |
|
|
1,800 |
|
|
(General Reserve distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
8,000 |
|
|
To X’s Capital A/c |
|
|
5,000 |
|
|
To Y’s Capital A/c |
|
|
3,000 |
|
|
(Revaluation profit distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr. |
|
3,000 |
|
|
To X’s Capital A/c |
|
|
3,000 |
|
|
(Adjustment of goodwill made) |
|
|
|
|
|
|
|
|
|
Answer:
|
Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
R’s Capital A/c |
Dr. |
|
8,000 |
|
|
To P’s Capital A/c |
|
|
4,000 |
|
|
To Q’s Capital A/c |
|
|
4,000 |
|
|
(Adjustment of goodwill made) |
|
|
|
|
|
|
|
|
|
|
|
R’s Capital A/c |
Dr. |
|
14,000 |
|
|
To P’s Capital A/c |
|
|
7,000 |
|
|
To Q’s Capital A/c |
|
|
7,000 |
|
|
(Profit on revaluation adjusted) |
|
|
|
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
48,000 |
|
|
To P’s Capital A/c |
|
|
19,200 |
|
|
To Q’s Capital A/c |
|
|
19,200 |
|
|
To R’s Capital A/c |
|
|
9,600 |
|
|
(General Reserve distributed among partners in old ratio) |
|
|
|
|
|
|
|
|
|
Partner’s Capital Accounts |
|||||||
Dr. |
Cr. |
||||||
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
P’s Capital A/c (Goodwill) |
|
|
4,000 |
Balance b/d |
2,40,000 |
2,00,000 |
1,60,000 |
Q’s Capital A/c (Goodwill) |
|
|
4,000 |
R’s Capital A/c (Goodwill) |
4,000 |
4,000 |
– |
P’s Capital A/c (Revaluation) |
|
|
7,000 |
R’s Capital A/c (Revaluation) |
7,000 |
7,000 |
– |
Q’s Capital A/c (Revaluation) |
|
|
7,000 |
General Reserve |
19,200 |
19,200 |
9,600 |
Balance c/d |
2,70,200 |
2,30,200 |
1,47,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,70,200 |
2,30,200 |
1,69,600 |
|
2,70,200 |
2,30,200 |
1,69,600 |
|
|
|
|
|
|
|
|
Balance Sheet |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors |
55,000 |
Land |
2,00,000 |
|
Bills Payable |
17,000 |
Building |
80,000 |
|
Capital A/cs: |
|
Plant |
1,60,000 |
|
P |
2,70,200 |
|
Stock |
2,10,000 |
Q |
2,30,200 |
|
Debtors |
60,000 |
R |
1,47,600 |
6,48,000 |
Cash |
10,000 |
|
7,20,000 |
|
7,20,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (X, Y and Z) = 2 : 2 : 1
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of Goodwill
WN 3 Calculation of Profit or Loss on Revaluation
Particulars |
Amount (Rs) |
|
Increase in Land |
1,00,000 |
(Cr.) |
Decrease in Building |
(4,000) |
(Dr.) |
Decrease in Plant |
(8,000) |
(Dr.) |
Increase in Stock |
15,000 |
(Cr.) |
Decrease in Creditors |
2,000 |
(Cr.) |
Profit on Revaluation |
1,05,000 |
(Cr.) |
|
|
|
WN 4 Adjustment of Profit on Revaluation
View NCERT Solutions for all chapters of Class 15