Following is the Balance Sheet of A and B who shared Profits and Losses in the ratio of 2 1 as at 1s......

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

Following is the Balance Sheet of A and B, who shared Profits and Losses in the ratio of 2 : 1, as at 1st April, 2019:

BALANCE SHEET OF A AND B

as on 1st April, 2019

Liabilities	Amount	Assets	Amount
Capital A/cs:		Land ad Building	2,90,000
A 3,00,000		Furniture	80,000
B 2,00,000	5,00,000	Stock	2,40,000
Reserve	1,50,000	Debtors	1,50,000
Creditors	2,00,000	Bank	60,000
		Cash	30,000
	8,50,000		8,50,000

On the above date, the partners changed their profit-sharing ratio to 3 : 2. For this purpose, the goodwill of the firm was valued at 3,00,000. The partners also agreed for the following:

The value of Land and Building will be 5,00,000;

Reserve is to be maintained at 3,00,000.

The total capital of the partners in the new firm will be 6,00,000, which will be shared by the partners in their new profit-sharing ratio. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

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By: Aman

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Change in Profit Sharing Ratio Among the Existing Partners

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