This document contains 5 problems related to changes in profit sharing ratios for partnerships. The problems involve calculating partner gains or sacrifices when ratios change, valuing goodwill of a firm based on super profits, making journal entries for adjustments to partner capital accounts and asset values when ratios change, and preparing revaluation accounts and a balance sheet after ratios change.

1. HERMANN GMEINER SCHOOL, FARIDABAD
SUBJECT – ACCOUNTANCY
CLASS- XII
CHAPTER- CHANGE IN PROFIT SHARING RATIO
WORKSHEETNO.9
1. A,B and C were in partnership sharing profit of in the ratio of 4:3:1 . The partners
agreed to have future profits in the share of 5:4:3. Calculate each partners’ gain
or sacrifice due to change in ratio.
2. Mahesh, Naresh and Suresh were partners sharing profits in the ratio of 2:3:4.
With effect from 1st April 2016 they agreed to share the profits on the ratio of
1:2:3. Calculate each partners gain or sacrifice due to change in ratio.
3. A firm earned profits of Rs. 80,000; Rs. 1,00,000; Rs. 1,20,000 and Rs. 1,80,000
during 2010-11, 2011-12, 2012-13, 2013-14 respectively. The firm has a capital
investment of Rs. 500,000. A fair rate of return on investment is 15% p.a. for the
similar business. Calculate the goodwill of the firm based on three years’
purchase of average super profit for the last four years.
4. A, B and C were partners in the firm sharing profit and losses in the ratio 3:2:1.
On March 31st, 2019 their balance sheet was as follows:
Liabilities Amount Assets Amount
Capital
A
B
C
Reserve fund
Creditors
Employees provident fund
50,000
40,000
30,000
18,000
27,000
50,000
2,15,000
Fixed assets
Current assets
150,000
65,000
2,15,000
From April 1st 2019, they decided to share the profits and losses equally. For this
purpose following adjustments were decided upon:
a. Goodwill to be valued at Rs. 300,000.
b. Fixed assets to be depreciated by 10%.

2. c. Expenses Rs. 3,000 were paid by the firm for getting the value of fixed assets
certified.
d. Capital of partners will be adjusted according to new profit sharing ratio by
opening the current account.
Pass the necessary journal entries for the above transactions in the books of the
firm.
5. X, Y and Z were partners in a firm sharing profits and losses in the ration 3:2:1.
their balance sheet a on 31st March, 2019 was as follows:
Liabilities Amount Assets Amount
Creditors
Bills payable
General reserve
Capitals:
X
Y
Z
100,000
40,000
60,000
200,000
100,000
50,000
550,000
Land
Building
Plant
Stock
Debtors
Bank
100,000
100,000
200,000
80,000
60,000
10,000
550,000
From 1st April they agreed to share profits and losses equally and agreed upon:
a. Goodwill to be valued at Rs. 300,000.
b. Land to be revalued at Rs. 160,000 and building to be depreciated by 6%.
c. Creditors worth Rs. 12000 were not to be claimed and hence written off.
Prepare revaluation A/c Partner’s Capital A/cs and balance sheet of the
reconstituted firm.