T S Grewal Solutions 2026-27 [Class 12] – Change in Profit Sharing Ratio – Q 21 to 31

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Solution for Q 21 to 31 of Chapter 3 of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Change in Profit Sharing Ratio from Partnership Accounts class 12. These Solutions are based on topics Calculation of New ratio, Accounting for reserves and Accumulated Profits and Losses and Accounting for Goodwill at the time of change in profit sharing ratio, revaluation of assets and liabilities, preparation of partners capital A/c and Balance Sheet

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 21 (i)

General Reserve A/c Dr..	60000
To Bootstrap Capital A/c		40000
To Davy Jones Capital A/c		20000

▶ Video Solution: Coming Soon

Question 21 (ii)

Calculation of Sacrificing/Gaining Ratio

Old Ratio		Bootstrap	Davyjones	Total
		2	1	3

New ratio		Bootstrap	Davyjones	Total
		3	2	5

Gain/Sacrifice	Bootstrap	Davyjones	Total
	1/15	-1/15	0
	Sacrifice	Gain

Value of General Reserve	60000
Bootstrap Sacrifice	4000	(60000*1/15)
Davy Jones Gains	4000	(60000*1/15)

Journal Entry
Davy Jones's Capital A/c Dr..	4000.0
To Bootstrap's Capital A/c		4000.0

▶ Video Solution: Coming Soon

Question 22

Journal Entries
(Deferred Revenue Expenditure written off)
Mita Capital A/c Dr..	15000		(30000*3/6)
Gopal Capital A/c Dr..	10000		(30000*2/6)
Farhan Capital A/c Dr..	5000		(30000*1/6)
To Deferred Advertisement Expenditure		30000

Contingency Reserve Distributed
Contingency Reserve A/c Dr..	9000
To Mita Capital A/c		4500	(9000*3/6)
To Gopal Capital A/c		3000	(9000*2/6)
To Farhan Capital A/c		1500	(9000*1/6)

Calculation of Sacrificing/Gaining Ratio

Old Ratio		Mita	Gopal	Farhan	Total
		3	2	1	6

New ratio	Mita	Gopal	Farhan	Total

	5	3	2	10

Gain/Sacrifice	Mita	Gopal	Farhan	Total
	0	1/30	-1/30	0
		Sacrifice	Gain

Value of Goodwill	480000

Journal Entry

Farhan Capital A/c Dr..				16000.0
To Gopal Capital A/c					16000.0

▶ Video Solution: Coming Soon

Question 23

General reserve			6000
Profit and Loss (Cr)			24000
Advertisement Suspense			-12000
Total accumulated Profits			18000

Calculation of Sacrificing/Gaining Ratio

Old Ratio		Alok	Sonu	Ravi	Total
		5	3	2	10

New ratio	Alok	Sonu	Ravi	Total

	2	3	5	10

Gain/Sacrifice	Alok	Sonu	Ravi	Total
	3/10	0	-3/10	0
	Sacrifice		Gain

Alok 's Sacrifice	3/10*18000	5400
Ravi's Gain	-3/10*18000	-5400

Ravi's Capital A/c Dr..				5400
To Alok's Capital A/c					5400

▶ Video Solution: Coming Soon

Question 24

Journal entry for Investment Fluctuation Reserve
Investment Fluctuation Fund A/c Dr..	20000
To Investment A/c		10000	(30K Less 20K)
To Bhavya Capital A/c		6000	Old ratio
To Sakshi Capital A/c		4000	Old ratio

Goodwill

Calculation of Sacrificing/Gaining Ratio

Old Ratio		Bhavya	Sakshi	Total
		3	2	5

New ratio		Bhavya	Sakshi	Total
		1	1	2

Gain/Sacrifice		Bhavya	Sakshi	Total
		1/10	-1/10	0

Sacrifice	Gain

Value of Goodwill			24000
Bhavya Sacrifice			2400.0
Sakshi Gains			2400.0

Journal Entry

Sakshi's Capital A/c Dr..				2400.0
To Bhavya's Capital A/c					2400.0

General Reserve

Note :

Since General Reserve is not to be distributed among the partners

So we adjust it through the partners capital A/c

Value of General Reserve				23400
Bhavya Sacrifice				2340.0
Sakshi Gains				2340.0

Sakshi's Capital A/c Dr..				2340.0
To Bhavya's Capital A/c					2340.0

▶ Video Solution: Coming Soon

Question 25

Calculation of Sacrificing/Gaining Ratio

Old Ratio		Hari	Kunal	Uma	Total
		5	3	2	10

New ratio	Hari	Kunal	Uma	Total

	2	5	3	10

	5/10-2/10	3/10-5/10	2/10-3/10
Gain/Sacrifice	Hari	Kunal	Uma	Total
	3/10	-1/5	-1/10	0
	Sacrifice	Gain	Gain

Journal Entries
Kunal Capital A/c Dr..	60000		(300000 X 1/5)
Uma Capital A/c Dr..	30000		(300000 X 1/10)
To Hari Capital A/c		90000	(300000 X 3/10)
(Goodwill adjusted on reconstitution through partner capital A/c)

Investment Fluctuation Fund A/c Dr..	15000
To Investment A/c		15000
(Fall in value of investment adjusted thorugh investment fluctuation fund)

Profit and Loss A/c Dr..	75000
To Hari Capital A/c		37500	Old ratio
To Kunal Capital A/c		22500
To Uma Capital A/c		15000
(Balance in Profit and Loss A/c transferred to partner capital A/c)

Revaluation A/c Dr..	5000
To Stock A/c		5000
(Value of stock depreciated and transferred to revaluation A/c)

Hari Capital A/c Dr..	2500
Kunal Capital A/c Dr..	1500
Uma Capital A/c Dr..	1000
To Revaluation A/c		5000
(Loss on revaluation transferred to partner capital A/c)

▶ Video Solution: Coming Soon

Question 26

Asset/Liability	Book Value	Revised	Gain	Loss
Machinery	250000	300000	50000
Computers	200000	175000		25000
Sundry Creditors	90000	75000	15000
Outstanding Expenses	15000	25000		10000
		Total	65000	35000
		Net Gain		30000

Calculation of Sacrificing/Gaining Ratio

Old Ratio		A	B	C	Total
		2	2	1	5

New ratio		A	B	C	Total
		5	3	2	10

Gain/Sacrifice	A	B	C	Total
	-1/10	1/10	0	0/1
	Gain	Sacrifice

▶ Video Solution: Coming Soon

Question 27

Calculation of Sacrificing/Gaining Ratio

Old Ratio		Ajeet	Vijeet	Sujeet	Total
		5	3	2	10

New ratio	Ajeet	Vijeet	Sujeet	Total

	2	5	3	10

Gain/Sacrifice	Ajeet	Vijeet	Sujeet	Total
	3/10	-1/5	-1/10	0
	Sacrifice	Gain	Gain

Calculation of Net Gain/Loss
Asset	Gain	Loss
Land	250000
Stock		300000
Total	250000	300000
Net Loss		50000

Journal Entry
Ajeet Capital A/c Dr.	15000
To Vijeet Capital A/c		10000
To Sujeet Capital A/c		5000
(Revaluation Gain adjusted through partners Capital A/c)

▶ Video Solution: Coming Soon

Question 28

Calculation of Sacrificing/Gaining Ratio

Old Ratio		Pinky	Rocky	Total
		3	2	5

New ratio		Pinky	Rocky	Total
		1	1	2

Gain/Sacrifice	Pinky	Rocky	Total
	1/10	-1/10	0
	Sacrifice	Gain

Journal Entry for Goodwill
Rocky Capital A/c Dr..	3600.0
To Pinky Capital A/c		3600.0
(Being Goodwil adjusted)

Calculation of Gain on Building
Market Value of Building				90000
Less - Book Value of Building				72000
Gain on Building				18000

Journal Entry for Gain on Building
Rocky Capital A/c Dr..	1800
To Pinky Capital A/c		1800
(Being revaluation gain adjusted without affecting book values)

▶ Video Solution: Coming Soon

Question 29

Valuation of Goodwill
2024			7500
2025			4000
2026			6500
Total			18000

Average Profits (18000/3)			6000
No of Years Purchase			2
Goodwill			12000

Calculation of Sacrificing/Gaining Ratio

Old Ratio			X	Y	Total
			5	3	8

New ratio			X	Y	Total
			3	5	8

Gain/Sacrifice	X	Y	Total
	1/4	-1/4	0
	Sacrifice	Gain

Journal Entry for Goodwill
Y's Capital A/c Dr..	3000
To X's Capital A/c		3000

Revaluation A/c
Particulars		Amount	Particulars	Amount

			By Machinery A/c	7000
			By Stock	1000

To Profits Transferred :
X Cap A/c	5000
Y Cap A/c	3000	8000

Total		8000	Total	8000

Journal Entry for Workmen Compensation Reserve
Workmen Compensation Reserve A/c Dr..	10000
To Workment Compensation Claim A/c		6000
To X's Capital A/c		2500
To Y's Capital A/c		1500
(W C R transferred to claim A/c and balance to capital A/c)

Partners Capital A/c
Particulars	X	Y	Particulars	X	Y
To X's Capital A/c-Goodwill		3000	By Balance B/d	52000	54000
To Goodwill	5000	3000	By Y's Capital A/c-Goodwill	3000
To Advertisement Suspense A/c	500	300	By Revaluation A/c	5000	3000
			By Workmen Compensation Reserve A/c	2500	1500
			By General Reserve A/c	3000	1800

To Balance C/d	60000	54000
Total	65500	60300	Total	65500	60300

Balance Sheet
Liabilities		Amount	Assets	Amount
Employees Provident Fund		1000	Machinery	45000
Sundry Creditors		5000	Furniture	15000
Workmen Compensation Claim		6000	Sundry Debtors	33000
Capital A/c			Stock	8000
X	60000		Bank	25000
Y	54000	114000

Total		126000		126000

▶ Video Solution: Coming Soon

Question 30

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Workmen Compensation Claim	30000
To Workmen Compensation Claim
		By Loss Transferred :
		Ram Capital A/c	12000
		Mohan Capital A/c	9000
		Sohan Capital A/c	6000
		Hari Capital A/c	3000
		(Loss divided in 4:3:2:1)

Total	30000		30000

Calculation of Sacrificing/Gaining Ratio

Old Ratio			Ram	Mohan	Sohan	Hari	Total
			4	3	2	1	10

New ratio	Ram	Mohan	Sohan	Hari	Total

	1	2	3	4	10

Gain/Sacrifice	4/10-1/10	3/10-2/10	2/10-3/10	1/10-4/10
	Ram	Mohan	Sohan	Hari	Total
	3/10	1/10	-1/10	-3/10	0
	Sacrifice	Sacrifice	Gain	Gain

Value of Goodwill	180000

Journal Entry for Goodwill
Sohan's Capital A/c Dr..	18000.0		180000*1/10
Hari's Capital A/c Dr..	54000.0		180000*3/10
To Ram's Capital A/c		54000.0	180000*3/10
To Mohan's Capital A/c		18000.0	180000*1/10

Partners Capital A/c
Particulars	Ram	Mohan	Sohan	Hari	Particulars	Ram	Mohan	Sohan	Hari
To Ram's & Mohan's Capital			18000.0	54000.0	By Balance B/d	400000	450000	250000	200000
(Goodwill)
					By Sohan's & Hari's Capital	54000.0	18000.0
To Revaluation A/c	12000	9000	6000	3000	(Goodwill)


To Balance C/d	442000	459000	226000	143000
Total	454000	468000	250000	200000	Total	454000	468000	250000	200000

To Ram Current A/c Cash	315000				By Balance B/d	442000	459000	226000	143000
To Mohan Current A/c		205000			By Sohan Current A/c			155000
					By Hari Current A/c				365000

To Balance C/d	127000	254000	381000	508000
Total	442000	459000	381000	508000	Total	442000	459000	381000	508000

Particulars	Ram	Mohan	Sohan	Hari	Total
Old Capital	442000	459000	226000	143000	1270000
New Profit Ratio	1	2	3	4	10
New Capital	127000	254000	381000	508000	1270000
Capital A/c	315000	205000	-155000	-365000
	Dr	Dr	Cr	Cr
Current A/c	Cr	Cr	Dr	Dr

Below not required in the solution. Shown here only for understanding

1	Actual cash to be widhdrawn or introduced
2	Capital adjustment to be made by opening current Accounts

Journal Entries
Ram Capital A/c Dr..	315000
To Cash / Ram Current A/c		315000

Mohan Capital A/c Dr..	205000
To Cash / Mohan Current A/c		205000

Cash / Sohan Current A/c Dr..	155000
To Sohan Capital A/c		155000

Cash / Hari Current A/c Dr..	365000
To Hari Capital A/c		365000

Balance Sheet
Liabilities		Amount	Assets		Amount
Capital A/c			Fixed Assets		900000
Ram	127000		Current Assets		520000
Mohan	254000		Current A/c
Sohan	381000		Sohan	155000
Hari	508000	1270000	Hari	365000	520000
Current A/c
Ram	315000
Mohan	205000	520000
Work Comp Claim/Liability		150000
Total		1940000			1940000

▶ Video Solution: Coming Soon

Question 31

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Workmen Compensation Claim	25000
To Workmen Compensation Claim
To Fixed Assets	60000
		By Loss Transferred :
		Suresh Capital A/c	17000
		Ramesh Capital A/c	17000
		Mahesh Capital A/c	25500
		Ganesh Capital A/c	25500

Total	85000		85000

Calculation of Sacrificing/Gaining Ratio

Old Ratio		Suresh	Ramesh	Mahesh	Ganesh	Total
		2	2	3	3	10

New ratio	Suresh	Ramesh	Mahesh	Ganesh	Total

	1	1	1	1	4

Gain/Sacrifice		Suresh	Ramesh	Mahesh	Ganesh	Total
		-1/20	-1/20	1/20	1/20	0

Gain

Sacrifice

Value of Goodwill	90000

Journal Entry for Goodwill
Suresh's Capital A/c Dr..	4500.0
Ramesh's Capital A/c Dr..	4500.0
To Mahesh's Capital A/c		4500.0
To Ganesh's Capital A/c		4500.0

Partners Capital A/c
Particulars	Suresh	Ramesh	Mahesh	Ganesh	Particulars	Suresh	Ramesh	Mahesh	Ganesh
To Mahesh's & Ganesh's Capital	4500.0	4500.0			By Balance B/d	100000	150000	200000	250000
To Mahesh's & Ganesh's Capital
(Goodwill)					By Suresh's & Ramesh's Capital			4500.0	4500.0
To Revaluation A/c	17000	17000	25500	25500	(Goodwill)


To Balance C/d	78500	128500	179000	229000
Total	100000	150000	204500	254500	Total	100000	150000	204500	254500

To Cash			25250	75250	By Balance B/d	78500	128500	179000	229000
					By Cash	75250	25250

To Balance C/d	153750	153750	153750	153750
Total	153750	153750	179000	229000	Total	153750	153750	179000	229000

Total Capital of the new firm
	Suresh	Ramesh	Mahesh	Ganesh	Total
Old Capital	78500	128500	179000	229000	615000

New Profit Ratio	1	1	1	1	4

New Capital	153750	153750	153750	153750	615000

Capital A/c	75250	25250	25250	75250
	Cr	Cr	Dr	Dr

Balance Sheet
Liabilities		Amount	Assets	Amount
Capital A/c			Fixed Assets	540000
Suresh	153750		Current Assets	345000
Ramesh	153750
Mahesh	153750
Ganesh	153750	615000

Sundry Creditors		170000
Work Comp Claim		100000

Total		885000		885000

Balance in Current Assets
Balance B/d				345000
Add - Cash brought by Suresh				75250
Add - Cash brought by Ramesh				25250
Less - Cash Withdrawn by Mahesh				25250
Less - Cash Withdrawn by Ganesh				75250

Balance				345000

▶ Video Solution: Coming Soon

Q 1-10 | Q 11-20 | Q 21-31 |

T S Grewal Solutions – Change in Profit Sharing Ratio – All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

Journal Entry

A's Capital A/c Dr..

To B's Capital A/c

(Revaluation Gain adjusted through partners Capital A/c)