1. A and B were partners in a firm sharing profits and losses equally.

With effect from 1st

April, 2010 they agreed to share profits in the ratio of 4:3. Due to change in profit sharing
ratio, A’s gain or sacrifice will be

2. A, B and C were partners sharing profits and losses in the ratio of 7:3:2. From 1st January,
2009 they decided to share profits and losses in the ratio of 8:4:3. Goodwill is Rs.
1,20,000. In adjustment entry for goodwill

3. X, Y and Z are partners in a firm sharing profits in the ratio of 4:3:2. Their Balance Sheet
as at 31.03.2009 showed a debit balance of Profit & Loss a/c Rs. 1,80,000. From
1.04.2009 they will share profits equally. In the necessary journal entry to give effect to
the above arrangement when X, Y and Z decided not to close the Profit & Loss Account

4. X, Y and Z are partners in a firm sharing profits in the ratio of 3:2:1. They decided to
share future profits equally. The Profit and Loss Account showed a credit balance of Rs.
60,000 and a General Reserve of Rs. 30,000. If these are not to shown in balance Sheet,
in the journal entry

5. X, Y and Z are partners sharing profits and losses in the ratio of 5:3:2. They decide to
share the future profits in the ratio of 3:2:1. Workmen Compensation Reserve appearing
in the Balance Sheet on the date if no information is available for the same will be

6. VK, SK and JK were partners in the ratio of 5:3:4. They admit MK as new partner for
1/12 share. It was decided that SK will retain his original share. Calculate new profit
sharing ratio of all the partners and Sacrificing ratio of VK, SK and JK.
7. X and Y are partners sharing profits and losses in the ratio of 7:3. They decided to admit
Z as a new partner in the business firm. X surrenders 1/7 from his share and Y surrenders
1/3 of his share in favour of Z. Calculate new ratio and sacrificing ratio.
8. A and B are partners in a firm sharing profits and losses in the ratio of 5:3. They admitted
C as a new partner in the firm with 1/5th share in profits, this share is contributed by
them in the ratio of 2:1. Calculate new ratio of the partners.
9. X and Y are partners sharing profits in the ratio of 4:3. They admit Z as a new partner.
The profit sharing ratio of X, Y and Z will be 2:3:1. Calculate the gain or sacrifice of old
partners.
10. A, B, C and D are in partnership sharing profits and losses in the ratio of 36:24:20:20
respectively. E joins the partnership for 20% share. A, B, C and D would share profits in
future in 3/10; 4/10; 2/10; 1/10. Calculate the new profit sharing ratio after E’s admission.
11. X and Y divide profits and losses in the ratio of 3:2. Z is admitted in the firm as a new
partner with 1/6th share, which he acquires, from X and Y in the ratio of 1:1. Calculate
new profit sharing ratio of all partners.
 12. Alec and Ben are in partnership as bakers, sharing profits and losses in the ratio of 3:2
respectively. Their Balance Sheet on 31st December 2006 was:

Liabilities Rs. Assets Rs.

Capital Sundry Assets 75,000
Alec 25,000
Ben 30,000 55,000
General Reserve 12,000
Current Liabilities 8,000
75,000 75,000
st
On 1 January, 2007 the partners agreed that as Alec wished to take a smaller part in the
partnership business, the profit sharing ratio should change to 2:3 respectively with a salary of
Rs. 10,000 year to Alec. For this purpose, goodwill was valued at Rs. 25,000. They do not want
to record the the goodwill and also do not want to later the book value of reserve but record the
change by passing one single journal entry.

You are required to show the single journal entry and prepare the revised balance sheet as
on 1st Jan. 2007.

13. Akansha, Amit and Shalu are partner sharing profits in the ratio of 5:3:2. On 1 April 2014
they decided to share the profits in the ratio of 2:2:1. On that date, following balance were
appearing in the balance sheet.
Profit and loss (Cr) Rs 1, 5000
General reserve Rs 5, 000
Deferred revenue expenditure Rs 1, 000. Pass single journal entry.

14. Sanjeev, Mohan and Ashish are partner sharing profits and losses in the ratio 2:3:4. They
decided to share future profits and losses in the ratio of 4:3:2. They also decided to record the
effect of the following without affecting their books values.
General reserve Rs 80, 000

Profit and loss account Rs 40, 000

Advertisements suspense account Rs 30, 000

You are required to give the necessary single journal entry.