Change in profit sharing ratio

In the event of change in profit sharing ratio,general reserve existing in the balance sheet is transferred to the capital accounts of the partners in their

• Sacrificing ratio

• Gaining ratio

• Old profit sharing ratio

• New profit sharing ratio

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

• A

• B

• C

• A and C

X and Y share profits and losses in the ratio of 3:2. With effects on 1st April 2020, they agreed to share profits equally. Goodwill of the form is valued at rs.60,000. The adjustment entry will be

• Dr. Y's capital A/c and Cr. X's capital A/c by rs. 6,000

• Dr. X's capital A/c and Cr. Y's capital A/c by rs. 6,000

• Dr. X's capital A/c and Cr. Y's capital A/c by rs. 600

• Dr. Y's capital A/c and Cr. X's capital A/c by rs 600

A B and C are partners sharing profits 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 the workmen compensation reserve appearing in the balance sheet on that date when no other information is available for the same

• Distributed among partners in their capital ratio

• Distributed among partners in their new profit sharing ratio

• Distributed among partners in their old profit sharing ratio

• Carried forward to new balance sheet

the ratio in which one or more partners of the firm forego that is sacrifice their share of profit in favour of one or more partners of the firm is known as

• Sacrificing ratio

• Gaining ratio

• No change in ratio

• Either a or b

Raman and Ranjan were partners in the form sharing profits and losses in the ratio of 3: 1. With effect from 1st January 2020 they agreed to share profits in the ratio of 2: 1. Due to change in the profit sharing ratio Ranjan gain or sacrifice will be

• Gain 1/12

• Sacrifice 1/12

• Gain 2/60

• Sacrifice 3/60

At the time of change in the profit sharing ratio, sacrificing ratio is determined so that

• Assets and liabilities are shown in their present values

• Gaining partner is not put to an advantage and the sacrificing partner is not put to disadvantage and vice versa

• Gaining partner can compensate the sacrificing partner for the sacrifice of profit share

• Assets and liabilities are shown at their current estimated values

The partners whose profit share have increased as result of change in profit sharing ratio are known as gaining partners

• True

• False

There is no difference between furniture be reduced by 20% and furniture be reduced to 20%

• True

• False