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📘 Class 12 Accountancy – Chapter 3 Change in Profit Sharing Ratio Quick Revision Notes + PYQs

Intro (2–3 lines):

Change in Profit Sharing Ratio is an important topic in Class 12 Accounts. Here are short notes with formulas, adjustments, and PYQs to help you revise quickly before exams.

🌟 Meaning

👉 Jab existing partners apna profit‑sharing ratio change karte hain (without admission/retirement), usse Change in PSR kehte hain.

👉 Isme ek partner ka sacrifice hota hai aur dusre ka gain.

📝 Key Terms

  • 🔄 Sacrificing Ratio = Old Ratio – New Ratio
  • 📈 Gaining Ratio = New Ratio – Old Ratio
  • 💰 Compensation: Gaining partner ko sacrificing partner ko compensate karna padta hai (Goodwill ke through).

📌 Adjustment Required

  1. Goodwill Adjustment
    • Gaining partner → Sacrificing partner ko compensate karega.
  2. Revaluation of Assets & Liabilities
    • Taaki naye ratio ke hisaab se fair value ho.
  3. Reserves & Accumulated Profits
    • Old ratio me distribute karna padta hai.

🔑 Formulas

  • Sacrificing Ratio = Old Ratio – New Ratio
  • Gaining Ratio = New Ratio – Old Ratio

📊 Exam Focus (Last 5 yrs)

✅ Sacrificing & Gaining Ratio calculation (3–4 marks)

✅ Goodwill adjustment entry (4–6 marks)

✅ Revaluation A/c preparation (6 marks)

✅ Distribution of reserves (3 marks)

🎯 Exam Tip

  • Agar Q me “Sacrifice” ya “Gain” poocha ho → Formula apply karo.
  • Agar Goodwill given hai → Gaining partner se Sacrificing partner ko adjust karna hoga.
  • Agar Revaluation A/c aaya → Profit/Loss old ratio me distribute hoga.

🧠 Memory Trick:

  • Sacrifice = Old – New
  • Gain = New – Old

⚡ Quick Keywords

Sacrificing Ratio | Gaining Ratio | Goodwill Adjustment | Revaluation | Reserves

📌 PYQs (Past Year Questions)

1️⃣ 2021 – X, Y and Z are partners sharing profits in 3:2:1. They decide to share equally. Calculate sacrificing/gaining ratio. (3 marks)

2️⃣ 2020 – A and B are partners in 3:2. They change to 2:3. Goodwill ₹50,000. Pass necessary journal entry. (4 marks)

3️⃣ 2019 – Explain why revaluation of assets and liabilities is necessary at the time of change in PSR. (3 marks)

4️⃣ 2018 – Partners decide to change their ratio from 5:3:2 to 2:3:5. Calculate sacrificing/gaining ratio. (4 marks)

5️⃣ 2017 – State the treatment of reserves and accumulated profits at the time of change in PSR. (3 marks)