Ram Mohan Sohan and Hari were partners in a firm sharing profits in the ratio of 4 3 2 1 On 1st Apri......

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Accountancy ( 12th) Change in Profit Sharing Ratio Among the Existing Partners Add to Study Deck

Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows:

BALANCE SHEET OF RAM, MOHAN, SOHAN AND HARI

as on 1st April, 2016

Liabilities			Assets
Capital A/cs: Ram	4,00,000		Fixed Assets Current Assets	9,00,000 5,20,000
Mohan
Sohan Hari Workmen Compensation Reserve	4,50,000 2,50,000 2,00,000	13,00,000 1,20,000
Sohan Hari Workmen Compensation Reserve		13,00,000 1,20,000
		14,20,000		14,20,000

From the above date, the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purpose the goodwill of the firm was valued at 1,80,000. The partners also agreed for the following:a

The Claim for workmen compensation has been estimated at 1,50,000.

Adjust the capitals of the partners according to the new profit-sharing ratio by opening Partners' Current Accounts. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

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Change in Profit Sharing Ratio Among the Existing Partners

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