12th Class Accountancy Change in Profit Sharing Ratio Among Existing Partner Question Bank

done Case Based - Change in Profit-Sharing Ratio Among Existing Partners Total Questions - 12

• question_answer1)
  You are required to answer the following questions 1 to 4 :

  Parvez, Quadir and Rehman sharing profits in the ratio of 5:3:2. To bring the equality among the partners, on 1st April 2021, they decided to share profits equally. For this purpose, goodwill of the firm to be valued at three years purchase of the average of last five years profits. The profits of last five years are as follows:

  Year 31st March 2017 31st March 2018 31st March 2019 31st March 2020 31st March 2021 Profit/Loss 60,000 Profit 1,50,000 Profit 1,70,000 Profit 1,90,000 Profit (70,000) Loss

  Sacrifice or Gain of Quadir:

  A)
  Sacrifice 5/30 done clear
  B)
  Sacrifice 1/30 done clear
  C)
  Gain 5/30 done clear
  D)
  Gain 1/30 done clear
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• question_answer2)
  Sacrifice or Gain of Parvez:
  A)
  Sacrifice 5/30 done clear
  B)
  Sacrifice 1/30 done clear
  C)
  Gain 5/30 done clear
  D)
  Gain 1/30 done clear
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• question_answer3)
  Sacrifice or Gain of Rehman:
  A)
  Sacrifice 4/30 done clear
  B)
  Sacrifice 3/30 done clear
  C)
  Gain 4/10 done clear
  D)
  Gain 1/30 done clear
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• question_answer4)
  While making adjustment for goodwill, Rehman's Capital Account will be:
  A)
  Debited by Rs. 10,000 done clear
  B)
  Debited by Rs.40,000 done clear
  C)
  Credited by Rs. 10,000 done clear
  D)
  Credited by Rs.40,000 done clear
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• question_answer5)
  You are required to answer the following questions 5 to 8:

  Three partners who started business few years back, now making a change in their partnership deed. Raka, Seema and Mahesh sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2021, they mutually agreed to share profits and losses in the ratio of 2:2:1.

  On that date, there was a workmen's compensation fund of Rs.90,000 in the books of the firm. It was agreed that Goodwill of the firm be valued at Rs.70,000. A Claim for workmen's compensation amounted to Rs.40,000.

  Profit on revaluation of assets and re-assessment of liabilities amounted to Rs. 40,000.

  Identify the Partner who is not Sacrificing OR Gaining:

  A)
  Raka done clear
  B)
  Seema done clear
  C)
  Mahesh done clear
  D)
  Both Seema and Mahesh done clear
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• question_answer6)
  Whose Capital Account will be debited for adjustment of goodwill:
  A)
  Raka     done clear
  B)
  Seema done clear
  C)
  Mahesh done clear
  D)
  Both Seema and Mahesh done clear
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• question_answer7)
  While adjusting for Workmen Compensation, Mahesh's Capital Account will be:
  A)
  Credited by Rs. 40,000 done clear
  B)
  Credited by Rs. 25,000 done clear
  C)
  Credited by Rs. 15,000 done clear
  D)
  Credited by Rs. 10,000 done clear
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• question_answer8)
  While adjusting the Revaluation Gain, Seema's Capital Account will be:
  A)
  Credited by Rs. 20,000 done clear
  B)
  Credited by Rs. 12,000 done clear
  C)
  Credited by Rs. 8,000 done clear
  D)
  Credited by Rs. 15,000 done clear
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• question_answer9)
  You are required to answer the following questions 9 to 10. A, B and C were partners sharing profits in the ratio of 5:4:3. They decided to change their profit sharing ratio to 2 : 2 : 1 w.e.f. 1st April, 2021. On that date, there was a balance of Rs.3,00,000 in General Reserve and a debit balance of Rs.4,80,000 in the Profit and Loss Account. When they want to distribute the General Reserve, identify the wrong statement:
  A)
  They cannot distribute General Reserve due to loss. done clear
  B)
  A's Capital Account will be credited with Rs. 1,25,000 done clear
  C)
  C's Capital Account will be credited with Rs. 75,000 done clear
  D)
  B's Capital Account will be Credited with Rs. 1,00,000 done clear
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• question_answer10)
  When they do not want to distribute the General Reserve, identify the wrong statement:
  A)
  B's Capital Account will be debited by 20,000 done clear
  B)
  A's Capital Account will be credited with Rs. 5,000 done clear
  C)
  C's Capital Account will be credited with Rs. 15,000 done clear
  D)
  B's Capital Account will be credited with Rs. 20,000 done clear
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• question_answer11)
  You are required to answer the following questions 11 to 12.

  X, Y and Z are equal partners. On 1st April, 2021 they decided to change their profit sharing ratio. Gain of Y was 1/6 at the time of reconstitution. On that date there was a balance of General Reserve in the Balance of the firm. Partners decided not to distribute the General Reserve but an adjustment entry was passed for the same:
  Y's Capital A/c	Dr.	3,000
  To X's Capital A/c			1,500
  To Z's Capital A/c			1,500
  New Profit Sharing Ratio:

  A)
  1:2:1 done clear
  B)
  2:2:1 done clear
  C)
  1:1:1 done clear
  D)
  1:2:2 done clear
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• question_answer12)
  Total amount of General Reserve was:
  A)
  15,000 done clear
  B)
  16,000 done clear
  C)
  17,000 done clear
  D)
  18,000 done clear
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