x y and z were sharing profit and loss in the ratio of 5 : 3 : 2 . they decided to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st april2007. they decided to record the effect of the following , without affecting their book value.
i profirand loss account rs 24,000
ii advertisements suspense account rs12,000
pass necessary adjutmententry .
if in any ques it is mentioned that ithout affecting their boo value, so do we have to ditribute profit n loss in sacrificing ratio in uch ques ?


Hey Limka,  you are right. For recording Net Effect in the Partners' Capital Sacrificing Ratio is to be calculated and an adjusting entry is to be passed.
However, the calculation of Net Effect provided by R C Gupta is correct. 
In addition to it, Calculation of Scarifying Ratio is given below.​
Sacrificing Ratio = Old Ratio - New RatioX = 510-210=310Y =  310-310=NilZ =  510-210=-310 
Since, here, Z is gainaing and X is sacrifing, thus, the adjusting entry would be.
  Journal
Date Particulars L.F. Debit Amount
Rs
Credit Amount
Rs
           
  Z’s Capital A/c Dr.   3,600  
     To X’s Capital A/c       3,600
  (Z, gaining partner will compensate X for the his sacrifice)        
           


Z will give = 12,000×310=Rs 3,600X will take =  12,000×310=Rs 3,600

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profit and loss cr.= 24000
advt. suspense dr. = (12000)
net = 24000- 12000 = 12000
12000 divided in old ratio = plus 6000 to x, plus 3600 to y, plus 2400 to Z
12000 taken back in new ratio = minus2400 from X, minus 3600 from Y, minus 6000 from Z

net = plus 3600 to X and minus 3600 to Z
entry= Z' capital a/c dr 3600
To X's capital Aa/c 3600
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i want to know that if in such questions it is mentioned that record the effect ithout affecting their book value then do we have to take out sacrifice ratio n then divide the amt in that ratio ?
 
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