Account class 12 Change in Profit Sharing Ratio The Exis

1. Change in profit sharing ratio of the existing partners results in the reconstitution of the partnership firm.

2. Change in profit sharing ratio does not change the relationship among the existing partners.

3. A partners whose shares have decreased as a result of change in profit sharing ratio are known as sacrificing partners.

4. The partners whose shares have increased as a result of change in profit sharing ratio are known as gaining partners.

5. Reserve, accumulated profit/loss should always be distributed at the tie of reconstitute of partnership even if the question is silent.

6. There is no difference between ‘furniture reduced by 20%’ and ‘furniture reduce to 20%’.

7. After revaluation, assets and liabilities may or may not be shown in the balance sheet at the revised values.

8. In the event of change in profit sharing ratio, general reserve appearing in the balance sheet is transferred to capital account of partners in their ;

9. In the event of change in profit sharing ratio, workman compensation reserve appearing in the balance sheet is transferred to capital account of partners.

10. In the event of change in profit sharing ratio, investment fluctuation reserve.

11. Assets are revalued and liabilities are reassessed at the time of change in profit sharing ratio so that ;

12. At the time of change in profit sharing ratio sacrificing ratio is determined so that ;

13. If the existing profit sharing ratio among A, B and C of 3 : 2 : 1 changed to 1 : 2 : 3, then the partners whose share will be unaffected is/are ;

14. X and Y shared profit and losses in the ratio of 3 : 2 with effect from 1st April, 2019, they agreed to share profits equally. Goodwill of the firm was valueeed at Rs 60,000.

The necessary single adjustment entry will be ;

15. A, B and C  are partners sharing profit in the ratio of 5 : 3 : 2. They decided to share future profits in the ratio of 2 : 3 : 5 what will be the accounting treatment of workmen compensation reserve appearing in the balance sheet on that date when no information is  available for the same ?

16. Sacrificing ratio is ;

17. Gaining ratio is ;

18. Any change in the relationship of existing partners which results in an end of the existing agreement and enforce making of a new agreement is called ;