[CBSE] DK Goel Q. 35 Change in Profit Sharing Ratio Solutions Class 12 (2024-25)
Solution of Question 35 of Change in Profit sharing ratio DK Goel Class 12 CBSE (2024-25)
P, Q and R were partners sharing profits in the ratio of 1 : 3 : 2. Following was their Balance Sheet as at 31st March, 2022:
| Liabilities | ₹ | Assets | ₹ |
| Sundry Creditors | 2,80,000 | Land and Building | 5,00,000 |
| Outstanding Expenses | 15,000 | Investments (Market Value ₹ 1,10,000) | 1,25,000 |
| Workmen Compensation Reserve | 60,000 | Stock | 2,20,000 |
| Investment Fluctuation Reserve | 45,000 | Sundry Debtors | 3,20,000 |
| Capital Accounts: P Q R | 2,00,000 5,00,000 3,00,000 | Bank Balance | 1,60,000 |
| Advertisement Suspense | 75,000 | ||
| 14,00,000 | 14,00,000 |
On 1st April, 2022 they decided to share future profits in the ratio of 4 : 6 : 5. It was agreed that:
(I) Claim for Workmen’s Compensation has been estimated at ₹ 1,00,000.
(ii) A motorcycle valued at ₹ 30,000 was unrecorded and is now to be recorded in the books.
(iii) Outstanding expenses were not payable any more.
(iv) Value of stock be increased to ₹ 2,90,000.
(v) A provision for doubtful debts be created @ 5% on Sundry Debtors.
(vi) Goodwill is valued at ₹ 1,00,000.
(vii) The work for reconstitution was assigned to firm’s auditors. They were paid ₹ 20,000 for this work.
Pass journal entries and prepare Revaluation Account.
[Ans. Gain on Revaluation ₹ 39,000.]
Solution:-
Working Notes:-
