Change in Profit sharing ratio of Partners Test

Result

Change in Profit sharing ratio of Partners Test - 4

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

VK, MK and JK are partners sharing profits equally. Now they have decided to share future profits in their capital ratio i.e. 5:3:2. Idenfity who two partners are sacrificing.

A
Only VK is sacrificing

B
VK and JK

C
MK and JK

D
VK and MK

Solution

Calculation of sacrificing share:
Formula = Old ratio – New ratio
VK = 1/3 – 5/10 = 5/30 Gain
Mk = 1/3 – 3/10 = 1/30 Sacrifice
JK = 1/3 – 2/10 = 4/30 Sacrifice
Question 2
1 / -0

X, Y and Z are sharing profits in the ratio of 50%; 40% and 10% respectively. Now, they have decided to share future profits equally. Identify the gainer partner.

A
X is gainer

B
Y is gainer

C
Both X and Y are gainer

D
Z is gainer

Solution

Calculation of gain or sacrifice:
Formula : Old Share – New Share
X = 5/10 – 1/3 = 1/6 Sacrifice
Y = 4/10 – 1/3 = 1/15 Sacrifice
Z = 1/10 - 1/3 = 7/30 Gain
Question 3
1 / -0

AK, BK and CK are sharing profits in the ratio of 2:1:1. They have decided to share future profits in the ratio of 3:2:1. Find out the gainer partner.

A
AK is the gainer partner

B
CK is the gainer partner

C
BK is the gainer partner

D
Both AK is the gainer partner and CK is the gainer partner

Solution

Calculation of gain or sacrifice:
Formula : Old Share – New Share
AK = 2/4 – 3/6 = No Sacrifice/ No Gain
BK = 1/4 – 2/6 = 1/12 Gain
CK = 1/4 - 1/6 = 1/12 Sacrifice
Question 4
1 / -0

X, Y and Z are partners sharing profits in the ratio of 4:3:2. The partners have decided to share future profits in the ratio of 3:1:1. Find out the gainer partner.

A
X is gainer

B
Y is gainer

C
Z is gainer

D
Y and Z are gainer

Solution

Calculation of gain or sacrifice:
Formula : Old Share – New Share
X = 4/9 – 3/5 = 7/45 Gain
Y = 3/9 – 1/5 = 6/45 Sacrifice
Z = 2/9 - 1/5 = 1/45 Sacrifice
Question 5
1 / -0

P and Q are sharing profit and losses equally .With effects from current year they decided to share profits in the ratio of 4:3.Calculate individual partner’s gain and Sacrifice

A
P gains 1/14 th share and Q sacrifices 1/14 th share

B
P gains 1/12 th share and Q sacrifices 1/14 th share

C
P gains 1/10 th share and Q sacrifices 1/14 th share

D
P gains 1/15th share and Q sacrifices 1/14 th share

Solution

Calculation of gain or sacrifice:
Formula : Old Share – New Share
P = 1/2 – 4/7 = 1/14 Gain
Q = 1/2 – 3/7 = 1/14 Sacrifice
Question 6
1 / -0

A,B and C who are presently sharing profit and losses in the ratio of 5:3:2, decide to share future profits and losses in the ratio of 2:3:5 with effect from 1st April 2012.Balance sheet shows land and building of 100000.What should be accounting g treatment if it decide it valued at ` 125000.By what amount revolution account should be credited in

A
₹1250

B
₹12500

C
₹2500

D
₹25000

Solution

There is an increase in the value of building Rs.25,000 (1,25,000 – 1,00,000). This change should be recorded in the credit side of revaluation account at the time of preparation of revaluation account.
Question 7
1 / -0

P, Q and R are partners sharing profits equally. They decided that in future R will get 1/5 share in profits and remaining profit will be shared by P and Q equally. On the day of change, firm’s goodwill is valued at ` 60,000. Identify the gain or sacrifice of the partners.

A
P Debit Rs.4,000 and Q Credit Rs.4,000

B
Q Debit Rs.4,000 and P Credit Rs.4,000

C
Q and R debit with 4,000 each and P Credit with 8,000

D
P Debit with 8,000 Q and R credit with 4,000 each

Solution

Change in Ratio:
Old Ratio = 1:1:1
New Ratio = 1:2:2
Sacrifice or Gain of partners:
P = 1/3 – 1/5 = 2/15
Q = 1/3 – 2/5 = 1/15 Gain
R = 1/3 – 2/5 = 1/15 Gain
Question 8
1 / -0

X, Y and Z are partners sharing profits in the ratio of 8/14; 4/14 and 2/14. Profit and Loss account shows a loss of Rs.2,800. Now partners have decided to share future profits in the ratio of 4:2:2. Who is the gainer and with what amount?

A
Y Rs.300

B
X Rs.300

C
Z Rs.300

D
Z and X Rs.150 each

Solution

Adjustment of loss at the time of change in profit sharing ratio:
Old Ratio = 8:4:2 OR 4:2:1
New Ratio = 4:2:2 OR 2:1:1
Formula = Old – New ratio
X’s Sacrifice 2/28; Y’s Sacrifice 1/28 and Z’s Gain 3/28.
Question 9
1 / -0

Ram and Rohit shared profit and loss in the ratio of 3:2. With effect from 01/04/2012 they agreed to share profits equally. The goodwill of the firm was valued at 30000. Which partner account should be debited in this case for the adjustment

A
Rohit Rs.30,000

B
Ram Rs.3,000

C
Rohit Rs.3,000

D
Both Rohit Rs.3,000 and Ram Rs.3,000 1,500 each

Solution

Adjustment of goodwill amount at the time of change in profit sharing ratio:
Old Ratio = 3:2
New Ratio = 1:1
Ram’s Sacrifice = 3/5 – 1/2 = 1/15
Rohit’s Gain = 2/5 – 1/2 = 1/15
Rohit’s Gain of goodwill amount = 30,000 × 1/10 = 3,000
Question 10
1 / -0

A, B and C are sharing profits and losses in the ratio 5:3:2 with effect from 01/04/2013 they decide to share profit and losses equally. Calculate B partner’s gain share

A
1/30th share

B
1/10th share

C
1/25th share

D
1/20th share

Solution

Calculation of gain or sacrificing ratio:
Formula : Old Share – New Share
A = 5/10 – 1/3 = 5/30 Sacrifice
B = 3/10 – 1/3 = 1/30 Gain
C = 2/10 - 1/3 = 4/30 Gain

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Change in Profit sharing ratio of Partners Test - 4

Result

Change in Profit sharing ratio of Partners Test - 4

Score

-

Rank

-

SHARING IS CARING

Question 1

Only VK is sacrificing

VK and JK

MK and JK

VK and MK

Solution

Question 2

X is gainer

Y is gainer

Both X and Y are gainer

Z is gainer

Solution

Question 3

AK is the gainer partner

CK is the gainer partner

BK is the gainer partner

Both AK is the gainer partner and CK is the gainer partner

Solution

Question 4

X is gainer

Y is gainer

Z is gainer

Y and Z are gainer

Solution

Question 5

P gains 1/14 th share and Q sacrifices 1/14 th share

P gains 1/12 th share and Q sacrifices 1/14 th share

P gains 1/10 th share and Q sacrifices 1/14 th share

P gains 1/15th share and Q sacrifices 1/14 th share

Solution

Question 6

₹1250

₹12500

₹2500

₹25000

Solution

Question 7

P Debit Rs.4,000 and Q Credit Rs.4,000

Q Debit Rs.4,000 and P Credit Rs.4,000

Q and R debit with 4,000 each and P Credit with 8,000

P Debit with 8,000 Q and R credit with 4,000 each

Solution

Question 8

Y Rs.300

X Rs.300

Z Rs.300

Z and X Rs.150 each

Solution

Question 9

Rohit Rs.30,000

Ram Rs.3,000

Rohit Rs.3,000

Both Rohit Rs.3,000 and Ram Rs.3,000 1,500 each

Solution

Question 10

1/30th share

1/10th share

1/25th share

1/20th share

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.