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Ch3 Assignment

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8 views

Ch3 Assignment

Uploaded by

Rachit Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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DELHI PUBLIC SCHOOL JALANDHAR

SUBJECT :ACCOUNTANCY CLASS :XII SECTION:B

DATE:16 May,2023 ASSIGNMENT NO:3


TOPIC: CHANGE IN THE PROFIT SHARING RATIO AMONG PARTNERS

1)A, B and C were partners in a firm sharing profits in the ratio of 3:4:1. They decided to share profits equally
w.e.f from 1 .4.2019. On that date the profit and loss account showed the credit balance of 96,000. Instead of
closing the profit and loss account, it was decided to record an adjustment entry reflecting the change in profit
sharing ratio.In the journal entry:
(a). Dr. A by 4,000; Dr. B by 16,000; Cr C by 20,000
(b)Cr. A by 4,000; Cr. B by 16,000; Dr C by 20,000
(c )Cr. A by 16,000; Cr. B by 4,000; Dr C by 20,000
(d). Dr. A by 16,000; Dr. B by 4,000; Dr C by 20,000

2)Assertion (A): It is very important to calculate gaining and sacrificing ratio at the time of change in profit
sharing ratio.
Reason (R): Sacrificing partner compensate the gaining partner by paying him proportion of amount of goodwill.
(a) Both Assertion and reason are true and reason is correct explanation of assertion.
(b)Assertion and reason both are true but reason is not the correct explanation of assertion.
(c ) Assertion is true, reason is false.
(d) Assertion is false, reason is true.
3)State any three circumstances other than (i) death of a partner (ii)admission of a partner (iii) retirement of a
partner when need for valuation of firm’s goodwill may arise.

4)P,Q and R sharing profits and losses in the ratio of 3:2:1, decided to share future profits and losses in 4:3:2
ratio with effect from 1-4-2023. Following is an extract of Balance Sheet as at 31-3-2019.

Liabilities Amount(Rs.) Assets Amount (RS.)


Workmen Compensation
Reserve 60,000
Show the treatment of above item under the following alternative cases:
(i) If there is no other information
(ii) If a claim on account of workmen compensation is estimated at Rs.12,000
(iii) If a claim on account of workmen compensation is estimated at Rs. 60,000
(iv) If a claim on account of workmen compensation is estimated at Rs.66,000
5)Aman, Babita and Chandan sharing profits and losses in the ratio of 3:2:1, decided to share future profits and
losses equally ratio with effect from 1-4-2023 Following is an extract of Balance Sheet as at 31-3-2023

1
Liabilities Amount(Rs.) Assets Amount (Rs.)
Investment Fluctuation Reserve 30,000 Investments (at cost) 10,00,000
Show the Journal entries of above item under the following alternative cases:
(i) If there is no other information.
(ii) If market value of investments is Rs.10,00,000
(iii) If market value of investments is Rs. 9,76,000
(iv) If market value of investments is Rs.10,36,000
(v) If market value of investments is Rs.9,40,000
(vi) If market value of investments is Rs. 9,28,000
6)Pass necessary Journal entries for revaluation of assets and liabilities for firm of X,Y and Z who were sharing
profits and losses in ratio of 3:3:2 and decided to share future profits in 4:3:2 w.e.f. 1-4-2023

Particulars Book value(Rs.) Revised value(Rs.)


Investments 44,000 40,000
Plant and Machinery 50,000 60,000
Buildings 80,000 70,000
Outstanding Expenses 10,000 11,000
Sundry Debtors 1,20,000 1,30,000
Trade Creditors 1,40,000 1,30,000

Pass necessary journal entry for the above revaluation of assets and liabilities.
7)A,B and C were partners in a firm sharing profits in the ratio of 5:3:2. On 1st April,2022 they decided to share
future profits in 2:3:5 ratio. On that date their Balance Sheet showed a Reserve Fund of Rs.90,000, profit and
loss account (credit) Rs.10,000 and advertisement suspense Rs. 40,000. The partners do not want to distribute
reserve and losses and also do not want to record goodwill . you are required to pass a single adjustment entry
for the above items.

8)A,B and C were partners in a firm sharing profits in the ratio of 5:3:2. On 1st April,2022 they decided to share
future profits in 2:3:5 ratio. On that date their Balance Sheet showed a Reserve Fund of Rs.90,000, profit and
loss account (credit) Rs.10,000 and advertisement suspense Rs. 40,000. you are required to pass necessary
journal entries for the above items.

Date of submission: 22 May,2023

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