12th Class Accountancy Change in Profit Sharing Ratio Among Existing Partner Question Bank Case Based - Change in Profit-Sharing Ratio Among Existing Partners

You are required to answer the following questions 5 to 8:

Three partners who started business few years back, now making a change in their partnership deed. Raka, Seema and Mahesh sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2021, they mutually agreed to share profits and losses in the ratio of 2:2:1.

On that date, there was a workmen's compensation fund of Rs.90,000 in the books of the firm. It was agreed that Goodwill of the firm be valued at Rs.70,000. A Claim for workmen's compensation amounted to Rs.40,000.

Profit on revaluation of assets and re-assessment of liabilities amounted to Rs. 40,000.

Identify the Partner who is not Sacrificing OR Gaining:

A) Raka

B) Seema

C) Mahesh

D) Both Seema and Mahesh

Correct Answer: C

Solution :

Mahesh