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Accountancy · 2024 · 3 marks
Reconstitution of a Partnership Firm – Admission of a PartnerChange in Profit Sharing Ratio among the Existing Partners3 marksshort answer
CBSE 2024 · Region 5 · Set 2 · Q19
Mahesh, Ramesh and Naresh were partners in a firm sharing profits in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. From 1st April, $\displaystyle 2023$, they decided to share profits equally. On that date, there was a balance of ₹ $\displaystyle 3,60,000$ in General Reserve and a debit balance of ₹ $\displaystyle 1,80,000$ in the Profit and Loss Account. Pass single adjustment Journal entry for the above on account of change in the profit sharing ratio.ORRavi, Guru, Mani and Sonu were partners in a firm sharing profits in the ratio of the $\displaystyle 2$ : $\displaystyle 2$ : $\displaystyle 2$ : 1. On 31st January, $\displaystyle 2023$, Sonu retired. On Sonu's retirement the Goodwill of the firm was valued at ₹ $\displaystyle 1,40$,000. The new profit sharing ratio among Ravi, Guru and Mani was agreed as $\displaystyle 5$ : $\displaystyle 1$ : 1. Showing your workings clearly, pass necessary Journal entry for the treatment of Goodwill in the books of the firm on Sonu's retirement without opening goodwill account.
OR
Ravi, Guru, Mani and Sonu were partners in a firm sharing profits in the ratio of the $\displaystyle 2$ : $\displaystyle 2$ : $\displaystyle 2$ : 1. On 31st January, $\displaystyle 2023$, Sonu retired. On Sonu's retirement the Goodwill of the firm was valued at ₹ $\displaystyle 1,40$,000. The new profit sharing ratio among Ravi, Guru and Mani was agreed as $\displaystyle 5$ : $\displaystyle 1$ : 1. Showing your workings clearly, pass necessary Journal entry for the treatment of Goodwill in the books of the firm on Sonu's retirement without opening goodwill account.Marking-scheme solution
Books of Mahesh, Ramesh and Naresh
Journal
Date Particulars LF Dr. Cr.
Amount Amount
(₹) (₹)
$\displaystyle 2023$
Apr.1 Ramesh’s Capital A/c Dr. $\displaystyle 6,000$
Naresh’s Capital A/c Dr. $\displaystyle 24,000$
To Mahesh’s Capital A/c $\displaystyle 30,000$
(Adjustment made for General Reserve and debit balance
of Profit and loss Account on account of change in profit
sharing ratio among partners)
Working Notes:
(i)
Items to be adjusted:
₹
General reserve $\displaystyle 3,60,000$
Profit and Loss Account (Dr.) ($\displaystyle 1,80,000$)
$\displaystyle 1,80,000$
(ii)
Calculation of sacrifice/ gain:
Sacrificing share= Old share- new share
Mahesh: $\displaystyle 5$/$\displaystyle 10$- $\displaystyle 1$/$\displaystyle 3$ =$\displaystyle 5$/$\displaystyle 30$ (sacrifice)
Ramesh: $\displaystyle 3$/$\displaystyle 10$- $\displaystyle 1$/$\displaystyle 3$ = -$\displaystyle 1$/$\displaystyle 30$ (gain)
Naresh: $\displaystyle 2$/$\displaystyle 10$- $\displaystyle 1$/$\displaystyle 3$ = -$\displaystyle 4$/$\displaystyle 30$ (gain)
Q. (b) Ravi, Guru, Mani and Sonu……
Ans.
Books of Ravi, Guru, Mani and Sonu
Journal
Date Particulars LF Dr.Amount Cr.Amount
(₹) (₹)
$\displaystyle 2023$
Jan.31 Ravi’s Capital A/c Dr. $\displaystyle 60,000$
To Sonu’s Capital A/c $\displaystyle 20,000$
To Guru’s Capital A/c $\displaystyle 20,000$
To Mani’s Capital A/c $\displaystyle 20,000$
(Ravi compensated Sonu for his share of goodwill
and to Guru and Mani for the sacrifice made by them
on Sonu’s retirement)
Working Notes:
(ii)
Calculation of gaining share:
Gaining share= New share- Old share
Ravi: $\displaystyle 5$/$\displaystyle 7$- $\displaystyle 2$/$\displaystyle 7$ =$\displaystyle 3$/$\displaystyle 7$ (gain)
Guru: $\displaystyle 1$/$\displaystyle 7$- $\displaystyle 2$/$\displaystyle 7$ = - $\displaystyle 1$/$\displaystyle 7$ (sacrifice)
Mani: $\displaystyle 1$/$\displaystyle 7$- $\displaystyle 2$/$\displaystyle 7$ = - $\displaystyle 1$/$\displaystyle 7$ (sacrifice)
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.