Practice Questions on Change in Profit Sharing Ratio | Class 12 Accountancy

1. Define reconstitution of partnership.
2. State the occasions in which reconstitution of partnership takes place. 
3. What is the nature of revaluation a/c?
4. Define sacrificing ratio and give its formula.
5. Define gain ratio and give its formula.
6. A, B and C are partners sharing profits equally. With effect from 1st April 2019, they decided to share profits and losses in ratio 3:2:1. Goodwill already appearing in the books of accounts is Rs 90,000. Pass the required journal entry.
7. A, B and C are partners sharing profits 4:3:2. With effect from 1st April 2019, they decided to share profits and losses in ratio equally. Goodwill of firm is valued at Rs 90,000. Pass the required journal entry.
8. X, Y and Z are partners sharing profits and losses in 5:3:2. With effect from 1st April 2019, they agree to share profits and losses equally. Goodwill of the firm was valued at Rs 30,000. Goodwill already appearing in the books of account was Rs 12000. Pass the necessary entries. 
9. A and B are partners sharing profits and losses in 2:1. With effect from 1st April 2019, they agree to share profits and losses in 1:2. On that date, reserve of Rs 30,000 is appearing in books of accounts. B insists on sharing reserves in the new ratio but A refuses. How would you settle this dispute between partners? Also, show how would you record this transaction in journal.
10. X, Y and Z are partners sharing profits and losses in 5:3:2. . With effect from 1st April 2019, they agree to share profits and losses equally. On that date, assets and liabilities were revalued and it was found that value of machinery has increased by Rs 5000, building has  been appreciated from Rs 200,000 to Rs 250,000, stock was decreased by Rs 2000, furniture was depreciated from Rs 20,000 to Rs 18000. Creditors are reduced by Rs 2000. Find out profit or loss on revaluation. 
11. X, Y and Z are partners sharing profits and losses in 5:3:2. With effect from 1st April 2019, they agree to share profits and losses 2:3:5. On that date, loss on revaluation was Rs 10,000 and advertisement suspense of Rs 5000. Pass the necessary entries.
12. X, Y and Z are partners sharing profits and losses in 5:3:2. With effect from 1st April 2019, they agree to share profits and losses 2:3:5. On that day, profit on revaluation was Rs 100,000. Pass the necessary entry.
13. X, Y and Z are partners sharing profits and losses in 5:3:2. With effect from 1st April 2019, they agree to share profits and losses 2:3:5. On that day, profit on revaluation was Rs 100,000. Partners do not want to record new values of assets and liabilities in books of accounts. Pass the necessary entry.
14. Prepare revaluation account from the following information. Also, calculate profit / loss on revaluation: value of stock has been reduced by Rs 1000, Provided 10% depreciation in machinery of Rs 200,000, Building of Rs 500,000 has been appreciated to Rs 550,000.
15. Prepare revaluation account from the following information. Also, calculate profit/ loss on revaluation: Creditors of Rs 20000 allowed discount of 5%, Prepaid wages Rs 500, Building of Rs 400,000 appreciated by 10%.