TS Grewal Solutions 2026-27 [Class 12] – Change in Profit Sharing Ratio – Q 01 to 10

Solution for Q 01 to 10 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 Sacrificing Ratio and Gaining Ratio, Accountting for Goodwill at the time of chnge in profit sharing ratio.

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 1

Old Ratio
Jayant	Nakul	Total
1	1	2

New ratio
Jayant	Nakul	Total
4	3	7

Gain/Sacrifice
Om	Shyam	Total
-1/14	1/14	0
Gain	Sacrifice

Note :

Gain sacrifice coming negative means New ratio higher than old ratio which means gain

Question 2

Old Ratio
Ahilya	Laxmi	Parvati	Total
5	3	2	10

New ratio
Ahilya	Laxmi	Parvati	Total
5	2	3	10

Gain/Sacrifice
Ahilya	Laxmi	Parvati	Total
0	1/10	-1/10	0
	Sacrifice	Gain

Question 3

Old Ratio
X	Y	Z	Total
5	3	2	10

New ratio
X	Y	Z	Total
1	1	1	3

Gain/Sacrifice
X	Y	Z	Total
1/6	-1/30	-2/15	0
Sacrifice	Gain	Gain

Question 4

Case 1
Calculation of new Profit sharinng ratio

A's New Share	(5/10 - 1/5)	3/10
C's New Share	(1/10 + 1/5)	3/10

Old Ratio
A	B	C	Total
5	4	1	10

New ratio
A	B	C	Total
3/10	2/5	3/10	1
3	4	3	10

Gain/Sacrifice
A	B	C	Total
1/5	0	-1/5	0
Sacrifice		Gain

Case 2

Calculation of new Profit sharinng ratio
C's Gets	1/5

C Gets from A	(1/5 X 1/2)	1/10

C Gets from B	(1/5 X 1/2)	1/10

A's New Share	(5/10 - 1/10)	2/5

B's New Share	(4/10 - 1/10)	3/10

C's New Share	(1/10 + 1/10 + 1/10)	3/10
	(1/10+1/5)

Old Ratio
A	B	C	Total
5	4	1	10

New ratio
A	B	C	Total
2/5	3/10	3/10	1
4	3	3	10

Gain/Sacrifice
A	B	C	Total
1/10	1/10	-1/5	0
Sacrifice	Sacrifice	Gain

Case 3

Old Ratio
A	B	C	Total
5	4	1	10

New ratio
A	B	C	Total

1	1	1	3

Gain/Sacrifice
A	B	C	Total
1/6	1/15	-7/30	0
Sacrifice	Sacrifice	Gain

Case 4

Calculation of new Profit sharinng ratio
C's Gets	1/5

C Gets from A	(5/10 X 1/10)	1/20	A ने दिया C को

C Gets from B	(4/10 X 1/2)	1/5	B ने दिया C को

A's New Share	(5/10 - 1/20)	9/20	A new share
	Old - share sacrificed

	Old - share sacrificed
B's New Share	(4/10 - 1/5)	1/5	B new share

	Old + share from A + share from B
C's New Share	(1/10 + 1/20 + 1/5)	7/20	C new share

Old Ratio
A	B	C	Total
5	4	1	10

New ratio
A	B	C	Total
9/20	1/5	7/20	1
9	4	7	20

Gain/Sacrifice
A	B	C	Total
1/20	1/5	-1/4	0
Sacrifice	Sacrifice	Gain

Question 5

New Ratio
Pranav	Karan	Rahim	Total
3	3	4	10

Description	Calculation	Value
Rahim takes from Pranav	(1/5 X 1/2)	1/10
Rahim takes from Karan	(1/5 X 1/2)	1/10

Pranav Old Share	(3/10 + 1/10)	2/5
Karan's Old Share	(3/10 + 1/10)	2/5
Rahim's Old Share	(4/10-1/10-1/10)	1/5

Old Ratio
Pranav	Karan	Rahim	Total
2/5	2/5	1/5	1
2	2	1	5

Question 6

Value of Goodwill

Old Ratio
Asha	Nisha	Disha	Total
3	2	1	6

New ratio
Asha	Nisha	Disha	Total
1	1	1	3

Gain/Sacrifice
3/6-1/3	2/6-1/3	1/6-1/3
Asha	Nisha	Disha	Total
1/6	0	-1/6	0
Sacrifice		Gain

Asha Sacrifice	(18000 X 1/6)	3000

Disha Gains	(18000 X 1/6)	3000

Journal Entry
Disha Capital A/c Dr..	3000
To Asha Capital A/c		3000

Question 7

Old Ratio
Mansi	Mona	Amar	Total
1	1	1	3

Amar's share in profits	1/3
Amar Sacrifice	1/3-1/5	2/15
Amar gain in firms goodwill	2/15 * 30000	4000

Next
In the new ratio Amar is sacrificing and X and Y are gaining
The gaining ratio between Mansi and Mona will be same as their mutual ratio
Gaining ratio of Mansi and Mona	1:1

Description	Calculation	Amount
Mansi gains	1/2*4000	2000
Mona gains	1/2*4000	2000

Journal entry :
Mansi Capital A/c Dr..	2000		Gaining
Mona Capital A/c Dr..	2000		Gaining
To Amar Capital A/c		4000	sacrificng

Alternate Method :

First find the new ratio among the partners

Z new share = 1/5

Balance Left = 1 - 1/5 = 4/5

Balance distributed among the partners in their mutual profit sharing ratio

Mansi new share = 4/5 X 1/2	4/10
Mona new share = 4/5 X 1/2	4/10

New Ratio
Mansi	Mona	Amar	Total
4/10	4/10	1/5
4	4	2	10
2	2	1

Now Find Gaining and Sacrificing ratio

Old Ratio
Mansi	Mona	Amar	Total
1	1	1	3

New ratio
Mansi	Mona	Amar	Total

2	2	1	5

Gain/Sacrifice
Mansi	Mona	Amar	Total
-1/15	-1/15	2/15	0
Gain	Gain	Sacrifice

Mansi gain in Goodwill =			Firm Goodwill X Share gained by X
			30000 * 1/15 = 2000

Mona gain in Goodwill =			Firm Goodwill X Share gained by Y
			30000 * 1/15 = 2000

Amar sacrifice in Goodwill =			Firm Goodwill X Share sacrificed by Z
			30000 * 2/15 = 4000

Journal entry :
Mansi Capital A/c Dr..	2000		Gaining
Mona Capital A/c Dr..	2000		Gaining
To Amar Capital A/c		4000	sacrificng

Question 8

Valuation of Goodwill

Calculation of Average Profits
2022	70000
2023	75000
2024	55000
2025	35000
2026	-10000

Total	225000

Average Profits	45000	(225000/5)
No of Years Purchase	2
Firm Goodwill	90000	(45000*2)

Calculation of Sacrificing/Gaining Ratio

Old Ratio
X	Y	Z	Total
5	3	2	10

New ratio
X	Y	Z	Total

1	1	1	3

Gain/Sacrifice
5/10-1/3	3/10-1/3	2/10-1/3
X	Y	Z	Total
1/6	-1/30	-2/15	0
Sacrifice	Gain	Gain

X Sacrifice	(90000 X 1/6)	15000.0

Y Gain	(90000 X 1/30)	3000.0

Z Gain	(90000 X 2/15)	12000.0

Y Capital A/c Dr..	3000.0
Z Capital A/c Dr..	12000.0
To X Capital A/c		15000.0

Question 9

Valuation of Goodwill
Calculation of Aggregate Profits
Year ended 31-Mar-2024	60000
Year ended 31-Mar-2025	75000
Total (Value of Goodwill)	135000

(Here avg profit or Super profit method etc are not used. Simply add the profits as per the language of the question)

Calculation of Sacrificing/Gaining Ratio

Old Ratio
A	B	Total
2	1	3

New ratio
A	B	Total
3	2	5

Gain/Sacrifice
A	B	Total
1/15	-1/15	0
Sacrifice	Gain

A Sacrifies	(135000 X 1/15)	9000
B Gain	(135000 X 1/15)	9000

Journal Entry for Goodwill
B's Capital A/c Dr..	9000
To A's Capital A/c		9000

Calculation of Past Adjustment
Description	A		B		Firm
Description	Dr	Cr	Dr	Cr	Dr	Cr
Incorrect Profits	60000		30000			90000
Correct Profits		54000		36000	90000

Total	60000	54000	30000	36000	90000	90000
Net Adjustment		6000	6000
		Dr	Cr

Journal Entry for adjustment of profits
A's Capital A/c Dr..	6000
To B's CapitalA/c		6000

Partners Capital A/c
Particulars	A	B	Particulars	A	B
To A's Capital A/c (Goodwill)		9000	By Balance B/d	150000	90000
To B's Capital A/c (Past Adjustment)	6000		By B's Capital A/c (Goodwill)	9000
To Balance C/d	153000	87000	By A's Capital A/c (Past Adjustment)		6000

Total	159000	96000	Total	159000	96000

Question 10

Calculation of Sacrificing/Gaining Ratio

Old Ratio
Ram	Laxman	Bharat	Total
5	3	2	10

New ratio
Ram	Laxman	Bharat	Total
1	1	1	3

Gain/Sacrifice
5/10-1/3	3/10-1/3	2/10-1/3
Ram	Laxman	Bharat	Total
1/6	-1/30	-2/15	0
Sacrifice	Gain	Gain

Value of Firm's Goodwill		450000

Ram Sacrifice	(450000 X 1/6)	75000.0
Laxman Gain	(450000 X 1/30)	15000.0
Bharat Gain	(450000 X 2/15)	60000.0

Laxman Capital A/c Dr..	15000.0
Bharat Capital A/c Dr..	60000.0
To Ram Capital A/c		75000.0
(Being Goodwill Adjusted)

Ram Capital A/c	37500
Laxman Capital A/c	22500
Bharat Capital A/c	15000
To Goodwill A/c		75000
(Being Old goodwill written off)

Q 1-10 | Q 11-20 | Q 21-30 |

T S Grewal Solutions – Partnership Accounts Goodwill – All Questions

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

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