# Class 12 Commerce Accountancy

Chapter 4 - Change In Profit Sharing Ratio Among The Existing Partners

Page No 4.39:

Question 1:

Om and Shyam are sharing profits and losses equally. With effect from 1st April, 2019, they agree to share profits in the ratio of 4 : 3. Calculate individual partner's gain or sacrifice due to the change in ratio.

Old Ratio (Om and Shyam) = 1 : 1

New Ratio (Om and Shyam) = 4 : 3

Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio

Om’s share = ½ - 4/7 = 7-8/14= -1/14 (Gain)

Shyam’s share = ½ - 3/7 = 7-6/14= 1/14  (sacrifice)

Om’s Gain = 1/14

Shyam’s Sacrifice = 1/14

Page No 4.39:

Question 2:

Ashok, Bhim and Chetan are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses in the ratio of 5 : 2 : 3. Calculate each partner's gain or sacrifice due to the change in ratio.

Old Ratio (Ashok, Bhim and Chetan) = 5 : 3 : 2

New Ratio (Ashok, Bhim and Chetan) = 5 : 2 : 3

Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio

Ashok’s share =5/10 – 5/10 = nil

Bhim’s share =3/10 – 2/10 = 1/10 (sacrifice)

Chetan’s share =2/10 – 3/10 = -1/10 (Gain)

Chetan’s Gain = 1/10

Bhim’s Sacrifice = 1/10

Page No 4.39:

Question 3:

X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses equally. Calculate each partner's gain or sacrifice due to the change in 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

X’s share =5/10 – 1/3 =  15-10/30= 5/30

Y’s share =3/10 – 1/3 =    9-10/30= -1/30

Z’s share =2/10 – 1/3 =     6-10/30= -4/30

Y’s Gain = 1/30

Z’s Gain = 4/30

X’s Sacrifice = 5/30

Page No 4.39:

Question 4:

A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:
Case 1. C acquires 1/5th share from A.
Case 2. C acquires 1/5th share equally form A and B.
Case 3. A, B and C will share future profits and losses equally.
Case 4. C acquires 1/10th share of A and 1/2 share of B.

Calculation of New Profit Sharing Ratio

Case 1:

A:B:C=5:4:1(Old Ratio)

C acquires 15th from A

A's sacrifice = 1/5

C's gain = 1/5

A=5/10−1/5= 5−2/10=3/10

B=4/10

C=1/10+1/5=1+2/10 =3/10

A:B:C=3:4:3

Case 2:

A:B:C=5:4:1(Old Ratio)

C acquires 1/5th share equally from A and B=1/5×1/2=1/10

A's sacrifice = 110 B's sacrifice = 1/10

C's gain = 1/5

A=5/10−1/10 =5−1/10=4/10

B=4/10−1/10=4−1/10=3/10

C=1/10+1/5=1+2/10=3/10

A:B:C=4:3:3

Case 3:

A:B:C=5:4:1(Old Ratio)

A:B:C=1:1:1(New Ratio)

A=5/10−1/3=15−10/30=5/30(Sacrifice)

B=4/10−1/3=12−10/30=2/30(Sacrifice)

C=1/10−1/3=3−10/30=−7/30(Gain)

Case 4:

A:B:C=5:4:1(Old Ratio)

A's sacrifice to C=5/10×1/10=1/20

B's sacrifice to C=4/10×1/2=4/20

C's gain=1/20+4/20=5/20

A=5/10−1/20 =10−1/20=9/20

B=4/10−4/20=8−4/20=4/20

C=1/10+5/20=2+5/20=7/20

A:B:C=9:4:7

Page No 4.40:

Question 5:

Asha, Nisha and Disha shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April, 2019, they agreed to share profits equally. The goodwill of the firm was valued at  ` 18,000. Pass necessary Journal entries when:

Calculation of Gain/Sacrifice made by the partners:

 Particulars Asha Nisha Disha Old Ratio 3/6 2/6 1/6 New Ratio 1/3 1/3 1/3 Gain/Sacrifice 1/6 (Sacrifice) Nil -1/6 (Gain)

 Journal Date Particular L.F. Debit Amount ( `) Credit Amount ( `) 2019 April 1 Disha’s Capital A/c (18,000×1/6) Dr. 3,000 To Asha’s Capital A/c (18,000×1/6) 3,000 (Being Adjustment for goodwill)

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## Chapter-3: Change in Profit Sharing Ratio| 2021-2022

From Question No. 1 to 5

From Question No. 6 to 10

From Question No. 11 to 15

From Question No. 16 to 20

From Question No. 21 to 25

From Question No. 26 and 27