When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued? Post category:Accountancy Reading time:1 mins read SOLUTION Yes. Because the profit or loss on revaluation should by credited or debited to the accounts of the partners in their old profit-sharing ratio. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhen there is change in the profit-sharing ratio amongst existing partners, does it require adjustment for goodwill? Next PostWhat is the nature of ‘Revaluation Account’? You Might Also Like What do you mean by Redeemable Preference Shares? September 28, 2022 Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets (other than cash) and outsider’s liabilities to Realisation Account, you are given the following information: (a) A creditor of Rs. 3,60,000 accepted machineries valued at Rs. 5,00,000 and paid to the firm Rs. 1,40,000. (b) A second creditor for Rs. 50,000 accepted stock at Rs. 45,000 in full settlement of his claim. (c) A third creditor amounting to Rs. 90,000 accepted Rs. 45,000 in cash and investments worth Rs. 43,000 in full settlement of his claim. (d) Loss on dissolution was Rs. 15,000. Pass necessary Journal entries for the above transactions in the books of firm assuming that all payments were made by cheque. July 25, 2022 Gautam and Yashica are partners sharing profits and losses in the ratio of 3: 2. They admit Asma into partnership. Gautam gives 1 / 3rd of his share while Yashica gives 1 / 10th from his share to Asma. Calculate new profit-sharing ratio and sacrificing ratio. November 2, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets (other than cash) and outsider’s liabilities to Realisation Account, you are given the following information: (a) A creditor of Rs. 3,60,000 accepted machineries valued at Rs. 5,00,000 and paid to the firm Rs. 1,40,000. (b) A second creditor for Rs. 50,000 accepted stock at Rs. 45,000 in full settlement of his claim. (c) A third creditor amounting to Rs. 90,000 accepted Rs. 45,000 in cash and investments worth Rs. 43,000 in full settlement of his claim. (d) Loss on dissolution was Rs. 15,000. Pass necessary Journal entries for the above transactions in the books of firm assuming that all payments were made by cheque. July 25, 2022
Gautam and Yashica are partners sharing profits and losses in the ratio of 3: 2. They admit Asma into partnership. Gautam gives 1 / 3rd of his share while Yashica gives 1 / 10th from his share to Asma. Calculate new profit-sharing ratio and sacrificing ratio. November 2, 2022