Change in profit sharing ratio class 12th accounts T.S.Grewal question - 21,22 & 23 Session 2026-27

Change in profit sharing ratio class 12th accounts T.S.Grewal question - 21,22 & 23 Session 2026-27 Treatment of accumulated profit & reserves Instagram Link : https://www.instagram.com/manojsharma... 21. Bootstrap and Davy Jones partners sharing profits in the ratio of 2: 1. On 31st March, 2026, their Balance Sheet showed General Reserve of 60,000. It was decided that in future they will share profits and losses in the ratio of 3: 2. Pass necessary Journal entry in each of the following alternative cases: (i) When General Reserve is not to be shown in the new Balance Sheet. (ii) When General Reserve is to be shown in the new Balance Sheet. (Ans.: (i) Dr. General Reserve A/c by 60,000; Cr. Bootstrap's Capital A/c by 40,000 (i.e., 2/3 of 60,000); and Davy Jones's Capital A/c by 20,000 (i.e., 1/3 of 60,000). Davy Jones's Gain-1/15; Dr. Davy Jones's Capital A/c by ₹ 4,000 (i.e., 1/15 of 60,000) and Cr. Bootstrap's Capital A/c by 4,000.] (ii) Bootstrap's Sacrifice-1/15; 22. Mita, Gopal and Farhan were partners sharing profits and losses in the ratio 3:2:1. On 31st March, 2018 they decided to change the profit-sharing ratio to 5:3: 2. On this date, the Balance Sheet showed Deferred Advertisement Expenditure 30,000 and Contingency Reserve₹ 9,000. Goodwill was valued at 4,80,000. Pass the necessary Journal entries for the above transactions in the books of the firm on its reconstitution. (CBSE 2019) [Ans.: (i) Dr. Mita's Capital A/c by 15,000; Gopal's Capital A/c by 10,000 and Farhan's Capital A/c by ₹ 5,000; Cr. Deferred Advertisement Expenditure A/c by 30,000. (ii) Dr. Contingency Reserve A/c by 9,000; Cr. Mita's Capital A/c by 4,500; Gopal's Capital A/c by 3,000 and Farhan's Capital A/c by 1,500. (iii) For Goodwill: Dr. Farhan's Capital A/c and Cr. Gopal's Capital A/c by 16,000.] 23. Alok, Sonu and Ravi are sharing profits and losses in the ratio of 5:3:2. They decide to share profits and losses in the ratio of 2:3:5 with effect from 1st April, 2026. They also decide to record the effect of the following accumulated profits, losses and reserves without affecting their book values by passing a single entry. General Reserve Profit & Loss A/c (Credit) Advertisement Suspense A/c Pass an Adjustment Entry. Book Values (₹) 6,000 24,000 12,000 [Ans.: Dr. Ravi's Capital A/c and Cr. Alok's Capital A/c by 5,400.] #msacademyaccounts #psr