Worksheet 2

Accounts Junction, Etawah
Class: XII Department: Commerce

Accountancy
Worksheet No: 2 Topic: Change in Profit sharing ratio among existing partners
1. Shama, Seema and Sikha are partners sharing profits and losses in the ratio of 3:2:1. Their
balance sheets as on 31st Mar 2021 were as follows:
Liabilities Rs. Assets Rs.
Creditors 87,000 Cash 30,000

Reserves 42,000 Debtors 62, 000
Profit & Loss A/c 21, 000 Less. Provision for
Capital Accounts Doubtful debts 2, 000
Shama 3, 00, 000 60, 000
Seema 3, 00, 000 Stock
Sikha 50, 000 Furniture 1,80,000
6,50,000 Plant 30,000
Building 2,00,000
8,00,000 3,00,000
8,00,000
The Partners agreed that from 1st April 2021 they will share profits and losses in the ratio of 4:4:1.
They agreed that: (i) Stock is to be valued at 20% less. (ii) Provision for doubtful debts to be
increased by Rs. 1, 500. (iii) Furniture is to be depreciated by 20% and plant by 15%. (iv) Rs.3, 500
are outstanding for salaries. (v) Building is to be valued at Rs. 3, 50, 000. (vi) Goodwill is valued at
Rs. 45, 000.
Prepare necessary accounts and Balance Sheet of reconstitutes firm.
2. Nardeep, Hardeep and Gagandeep were partners in a firm sharing profits in 2 : 1 : 3 ratio. Their
Balance Sheet as on 31st March, 2021 was as follows:
Creditors 1,00,000 Land 1,00,000

Bills Payable 40,000 Building 1,00,000
General Reserve 60,000 Plant 2,00,000
Partners’ Capital A/cs: Stock 80,000
Nardeep 2,00,000 Debtors 60,000
Hardeep 1,00,000 Bank 10,000
Gagandeep 50,000
3,50,000
5,50,000 5,50,000
From 1st April, 2021 Nardeep, Hardeep and Gagandeep decided to share the future profits equally.
For this purpose it was decided that: (a) Goodwill of the firm be valued at Rs.3,00,000. (b) Land be
revalued at Rs.1,60,000 and building be depreciated by 6%. (c) Creditors of Rs.12,000 were not
likely to be claimed and hence be written off.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the
reconstituted firm.
3. X, Y and Z are partners sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st
March, 2021 stood as follows:
Sundry Creditors 1,20,000 Cash in Hand 55,000

Outstanding Expenses 15,000 Cash at Bank 2,10,000
General Reserve 75,000 Bills Receivable 20,000
Profit and Loss A/c 50,000 Sundry Debtors 1,10,000
Capital A/cs: Less: Provision for Doubtful Debts 10,000
X 3,00,000 1,00,000
Y 2,80,000 Stock 2,00,000
Z 2,20,000 Machinery 3,50,000
8,00,000 Computers 1,00,000
Furniture 25,000
10,60,000 10,60,000
The partners agreed to share profits w.e.f. 1st April, 2021 in the ratio of 5 : 3 : 2.
They also agreed to the following:
(i) Value of stock be increased to Rs. 2,25,000.
(ii) Provision for Doubtful Debts be written back, all debtors being good.
(iii) Value of Machinery be reduced by 5%.
(iv) Value of Computers be reduced to Rs. 82,500.
(v) Goodwill of the firm for the purpose was valued at Rs.1,00,000.
Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet.
4. X, Y and Z are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1.
Their Balance Sheet as at 31st March, 2020 was as follows
Sundry Creditors 50,000 Cash at Bank 1,01,000

General Reserve 50,000 Sundry Debtors 1,00,000
Capital A/cs: Stock 2,10,000
X 3,00,000 Machinery 2,60,000
Y 3,00,000 Building 2,25,000
Z 2,00,000 Advertisement Suspense 4,000
8,00,000
9,00,000 9,00,000
Partners decided that with effect from 1st April, 2020 they would share profits and losses equally. It
was agreed that:
(i) Stock is to be valued at ` 2,00,000.
(ii) Value of Machinery is to be decreased by 10%.
(iii) A Provision for Doubtful Debts is to be made on Sundry Debtors @ 5%.
(iv) Building to be appreciated by ` 50,000.
(v) It was agreed that Z would carry out reconstituting the firm for which he will be paid
remuneration of ` 5,000.
Pass necessary accounting entries.
5. S, T, U and V were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1.

Balance Sheet of S, T, U and V as on 1-4-2021
Liabilities Assets
Capitals : Fixed Assets 4,40,000
S 2,00,000 Current assets 2,00,000
T 1,50,000
U 1,00,000
V 50,000
5,00,000
Sundry Creditors 80,000
WCR 60,000
6,40,000 6,40,000
From the above date partners decided to share the future profits in 3 : 1 : 2 : 4 ratio.
For this purpose the goodwill of the firm was valued at Rs.90,000. The partners also agreed for the
following :
(i) The claim for workmen compensation has been estimated at Rs.70,000.
(ii) To adjust the capitals of the partners according to new profit sharing ratio by opening partners
current accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted
firm.
6. Suresh, Ramesh, Mahesh and Ganesh are partners in a firm sharing profits in the ratio of
2 : 2 : 3 : 3.
Balance Sheet as on 1.4.2020
Liabilities Assets
Capitals : Fixed Assets 6,00,000
Suresh 1,00,000 Current assets 3,45,000
Ramesh 1,50,000
Mahesh 2,00,000
Ganesh 2, 50,000 7,00,000
Sundry Creditors 1,70,000
Workmen Compensation Reserve 75,000
9,45,000 9,45,000
From the above date partners decided to share the future profits equally.
For this purpose the goodwill of the firm was valued at Rs.90,000. The partners also agreed for the
following :
(i) The claim for workmen compensation has been estimated at Rs.70,000 and fixed assets
depreciated by 10%.
(ii) The capitals of the partners were adjusted in the new profit sharing ratio. For this necessary cash
will be brought in or paid to the partners as the case may be.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the
reconstituted firm.
7. Jaspal, Apoorv and Ankit are partners sharing profits and losses in the ratio of 5 : 3 : 2.
Their Balance Sheet as at 31st March, 2021 was as follows:
Sundry Creditors 1,50,000 Cash in Hand 75,000

Salaries Payable 50,000 Cash at Bank 1,50,000
General Reserve 2,00,000 Sundry Debtors 2,00,000
Capital A/cs: Stock 50,000
Jaspal 5,00,000 Land and Buildings 5,00,000
Apoorv 3,00,000 Machinery 2,00,000
Ankit 2,00,000 Computers 1,75,000
10,00,000 Furniture 50,000
14,00,000 14,00,000
Profit sharing ratio w.e.f. 1st April, 2021 was decided to be 2 : 2 : 1. It was agreed by partners to
carry out following adjustments:
(i) Stock is to be reduced by Rs.10,000.
(ii) Provision for Doubtful Debts is to be created @ 5%.
(iii) Land and Buildings to be appreciated by 10% and Machinery to be reduced to 90%.
(iv) Goodwill of the firm is valued at Rs.1,00,000.
(v) Total capital of the firm was to be Rs.10,00,000 and is to be in their profit-sharing ratio. Excess
or short capital is to be adjusted through their Current Accounts.
Prepare the Revaluation A/c, Partner’s capital A/c and Balance Sheet of the new firm.

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Accounts Junction, Etawah

Class: XII Department: Commerce

Creditors 87,000 Cash 30,000

Creditors 1,00,000 Land 1,00,000

Sundry Creditors 1,20,000 Cash in Hand 55,000

Sundry Creditors 50,000 Cash at Bank 1,01,000

Pass necessary accounting entries.

5. S, T, U and V were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1.

Sundry Creditors 1,50,000 Cash in Hand 75,000

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