[CBSE] Q. 18 Change in profit sharing ratio Solution TS Grewal Class 12 (2026-27)

Solution to Question number 18 of the Change in Profit Sharing Ratio chapter 4 of TS Grewal Book class 12 CBSE 2026-27 Edition.

Nitin, Tarun and Amar are partners sharing profits equally and decide to share profits in the ratio of 2 : 2 : 1 w.e.f 1st April, 2024.

The extract of their Balance Sheet as at 31st March, 2023 is as follows:

Liabilities	₹	Assets	₹
Investment Fluctuation Reserve	60,000	Investments (At Cost)	4,00,000

Pass the Journal entries in each of the following situations:

i) When its Market Value is not given;

ii) When its Market Value is ₹ 4,00,000;

iii) When its Market Value is ₹ 4,24,000;

iv) When its Market Value is ₹ 3,70,000;

v) When its Market Value is ₹ 3,10,000;

Solution:-