R,O and M are sharing profits and losses in the ratio 5:3:2 They decide to share future profits and losses in the ratio of 2:3:5 with effect from 1st April ,2015.They also decided to record the effect of following revaluations without affecting the book values of the assets and liabilities,by passing a single adjusting entry.

Identify the value being communicated by the partners.

Kartik and Aroha are partners in a firm sharing profits in the ratio of 2:3 The balance sheet of the firm as at  31st March ,2015 is given below
                                                     Balance Sheet
                                                    as at 31st March, 2015

The partners decided to share profits in equal ratio with effect from 1st April,2015 The following adjustments were agreed upon.
(i)Land and building was valued at Rs 16,000 and machinery at Rs16,400 and were to appear at revalued amounts in the balance sheet.
(ii)The goodwill of the firm was valued at Rs 800 but it was not to appear in books.
Pass the necessary journal entries to give effect to the above and also prepare revaluation account.

P,Q and R are partners sharing profits and losses in the ratio  of 5:3:2. They decide to share future profits and losses in the ratio of 2:3:5 with effect from 1st April 2015, They also decide to record the effect of the following accumulated profits,losses and reserves without affecting their book figures ,by passing a single adjusting entry.

L,M and N are partners sharing profits in the ratio of 3:2:1 respectively.From 1st April,2014 they decided to share profits in the ratio of 2:3:1 The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years purchase of the average of five years profits.The profits and losses of the precedding five years are
Profit:1------Rs 1,44,000;  II-----Rs 3,60,000; III---- Rs 4,08,000; IV----4,56,000
Loss:V---- Rs 1,68,000.
Showing the working clearly, give the necessary journal entry to record the above change.

Give the journal entry to transfer advertisement suspense account to old partners capital accounts, when there is a change in profit accounts when there is a change in profit sharing ratio.

At the time of revaluation.it is decided to increase the value of buildings by Rs 50,000 pass the journal entry to give effect to the above adjustment,when revaluation account is to be opened in the books.

In which ratio is goodwill already existing in the books of account written-off?

Which partner's capital account is debited at the time of adjusting goodwill through capital accounts?

Which Accounting Standard states that goodwill is to recorded in the books only when some consideration in money or money's worth has been paid for it?

In case of change in profit sharing ratio ,how can the gaining partner compensate the sacrificing partner?

State the need for treatment of goodwill on change in profit sharing ratio

Why is it necessary to adjust goodwill at the time of change in profit sharing ratio?

Kumar, Gupta and Kavita were pertners in a firm sharing profits and losses equally. The firm was engaged in the storage and distribution of canned juice and its godowns were located at three different places in the city. Each godowns was being managed individually by kumar, Gupta and Kavita. Because of increase in business activities at the godown managed by Gupta, he had to devote more time. Gupta demanded that his share in the profits of the firm be increased, to which Kumar and Kavita agreed. The new profit sharing ratio was agreed to be 1:2:1. For this purpose, the goodwill of the firm was valued at two years purchase of the average profits of last five years. The profits of the last five years were as follows:

You are required to:

(i) Calculate the goodwill of the firm.

(ii) Pass necessary Journal for the treatment of goodwill on change in profit sharing ratio of Kumar, Gupta and Kavita.                          

X, Y and Z were sharing profits and losses in the ratio of 5:3:2. They decided to share future profits and losses in the ratio of 2:3:5 with effect from 1.4.2007. They decided to record the effect of the following, without effecting their book values:

(i) Profit and Loss Account (Cr.)          Rs.24,000

(ii) Advertisement Suspense Account  Rs.12,000

     Pass the necessary adjusting entry.       

Anita, Asha and Amrit are partners sharing profits in the ratio of 3:2:1 respectively. From 1st January 2010, they decided to share profits in the ratio of 1:3:2. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years purchase of the average of five years profits. The profits and losses of the preceding five years are: Profits 2005-Rs 1,20,000; -Rs 3,00,000; 2007-Rs 3,40,000; 2008-Rs 3,80.000; 2009-Rs 1,40,000 (Loss).

Showing the working clearly, give the necessary journal entry to record the above change.