17 :- A, B and C who are sharing profits and losses in the ratio of 5 : 3 : 2 decide to share future profits in the ratio of 2 : 3 : 5. Give the Journal entry to distribute ‘Investments Fluctuation Reserve’ of Rs 20,000 at the time of change in profit sharing ratio, when investment (market value Rs 95,000) appears in the books at Rs 1,00,000.
18 :- 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, 2025. The extract of their balance sheet as at 31st March, 2025 is as follows :
Pass the Journal entries in each of the following situations:
(i) When its Market Value is not given;
(ii) When its Market Value is Rs 4,00,000;
(iii) When its Market Value is Rs 4,24,000;
(iv) When its Market Value is Rs 3,70,000;
(v) When its Market Value is Rs 3,10,000;
19 :- Anu, Manu, Sonu and Rohan were partners in a firm sharing profits and losses in the ratio of 1:2:1:2. With effect from 1st April,2023, they decided to share profits and losses in the ratio of 2:4:1:3. Their balance sheet showed general reserve of Rs 90,000. The goodwill of the firm was valued at Rs 4,50,000. Pass necessary Journal entries for the above on account of change in the profit – sharing ratio. Show your working clearly.
20 :- Sohan, Ashish, Vishesh and Rashi were partners in a firm sharing profits and losses in the ratio of 4:3:2:1. With effect from 1st April,2023, they decided to share profits and losses in the ratio of 2:1:1:1. Their balance sheet showed a General Reserve of Rs 80,000. The goodwill of the firm was valued at Rs 5,00,000. Pass necessary Journal entries for the above on account of change in the profit – sharing ratio. Show your working clearly.
Question 1 to 4 (Sacrificing and Gaining Share)
Question 5 (Calculation of Old Profit – Sharing Ratio on the basis of Sacrificing and Gaining share)
Question 6 to 10 (Accounting of goodwill)
Question 11 (Calculation of New Profit – sharing ratio on the basis of Adjustment of goodwill)
Question 12 to 16 (Accounting of Reserves, Accumulated Profits and Losses)
Question 17 to 20 (Accounting of Reserves, Accumulated Profits and Losses)
Question 21 to 24 (Accounting of Reserves, Accumulated Profits and Losses)
Question 25 to 28 (Revaluation of Assets and Reassessment of Liabilities)
Question 29 to 30 (Preparation of Balance Sheet)
Question 31 to 32 (Adjustment of capital)