[CBSE] DK Goel Q. 40 Change in Profit Sharing Ratio Solutions Class 12 (2026-27)

Solution of Question 40 (A) and 40 (B) of Change in Profit sharing ratio DK Goel Class 12 CBSE (2026-27)

Q. 32 (A)

A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 : 1. They decided to share future profits and losses in the ratio of 3 : 2 : 2 : 3. For this purpose goodwill of the firm valued at ₹ 1,50,000. There was also a reserve of ₹ 60,000 in the books of the firm.

Find out sacrifice ratio and gaining ratio and pass necessary journal entry assuming that reserve is not to be distributed.

[Ans. Debit C by ₹ 7,000 and D by ₹ 28,000; Credit A by ₹ 7,000 and B by ₹ 28,000.]

Solution:-

Q. 32 (b)

Arun and Varun were in partnership sharing profits in the ratio of 2 : 3. With effect from 1st May 2021 they agreed to share profits in the ratio of 1 : 2. For this purpose the goodwill of the firm is to be valued at two year’s purchase of the average profits of last three years, which were ₹ 1,50,000, ₹ 1,40,000 and ₹ 2,20,000 respectively. Reserves appear in the books at ₹ 1,10,000. Partners do not want to distribute the reserves. You are required to give effect to the change by passing a single journal entry.

[Ans. Debit Varun and Credit Arun by ₹ 30,000.]

Solution:-