**Ultimate Book of Accountancy Class 12 Part A Solutions – Reconstitution of Partnership**

You can buy this text book from here: http://amzn.to/2s2YSxN

### Practical Problems

**Solution 1:**

Old Share = 1 : 1 : 1

New Share = 5 : 3 : 2

Calculation of Sacrifice/Gain Share = Old share – new share

X = 1/3 – 5/10 = 5/30 Gain

Y = 1/3 – 3/10 = 1/30 Sacrifice

Z = 1/3 – 2/10 = 4/30 Sacrifice

**Solution 2:**

Old Share = 3 : 2

New Share = 5 : 3

Calculation of Sacrifice/Gain Share = Old share – new share

A = 3/5 – 5/8 = 1/40 Gain

B = 2/5 – 3/8 = 1/40 Sacrifice

**Solution 3:**

Old Share = 4 : 3 : 2

New Share = 1 : 1 : 1

Calculation of Sacrifice/Gain Share = Old share – new share

A =4/9 – 1/3 = 1/9 sacrifice

B = 3/9 – 1/3 = No sacrifice no gain

C = 2/9 -1/3 = 1/9 Gain

**Solution 4:**

Old Share = 3 : 2

New Share = 1 : 1

Calculation of Sacrifice/Gain Share = Old share – new share

A = 3/5 – A = 1/10 sacrifice

B = 2/5 – A = 1/10 Gain

B’s Capital A/c Dr. 3,000

To A’s Capital A/c 3,000

Share of B = 30,000 x 1/10 = 3,000 and A’s Share = 30,000 x 1/10 = 3,000

**Solution 5:**

Old Share = 5 : 3 : 2

New Share = 1 : 1 : 1

Calculation of Sacrifice/Gain Share = Old share – new share

Gupta = 5/10 – 1/3 = 5/30 sacrifice

Verma = 3/10 – 1/3 = 1/30 Gain

Sharma = 2/10 – 1/3 = 4/30 Gain

Verma’s Capital A/c 4,000

Sharma’s Capital A/c 16,000

To Gupta’s Capital A/c 20,000

**Solution 6:**

Old Share = 4/9 : 1/3 : 2/9 OR 4 : 3 : 2

New Share = 1 : 1 : 1

Calculation of Sacrifice/Gain Share = Old share – new share

A = 4/9 – 1/3 = 1/9 sacrifice

B = 3/9 -1/3 = No sacrifice no gain

C = 2/9 -1/3 = 1/9 Gain

C’s Capital A/c Dr. 1,200

To A’s Capital A/c 1,200

**Solution 7:**

Old Share = 3 : 2 : 1

New Share = 5 : 3 : 2

Calculation of Sacrifice/Gain Share = Old share – new share

Akshita = 3/6 – 5/10 = No sacrifice no gain

Bakshi = 2/6 – 3/10 = 1/30 sacrifice

Chandra = 1/6 – 2/10 = 1/30 Gain

Chanda’s Capital A/c Dr. 2,000

To Bakshi 2,000

Note: 60,000 x 1/30 = 2,000

**Solution 8:**

Old Share = 1 : 1

New Share = 5 : 3

Calculation of Sacrifice/Gain Share = Old share – new share

Lal = ½ – 5/8 = 1/8 gain

Bal = ½ – 3/8 = 1/8 sacrifice

Lal’s Capital A/c Dr. 500

To Bal’s Capital A/c 500

**Solution 9:**

Old Share = 3 : 3 : 2

New Share = 1 : 1 : 1

Calculation of Sacrifice/Gain Share = Old share – new share

GK = 3/8 – 1/3 = 1/24 sacrifice

SK = 3/8 – 1/3 = 1/24 sacrifice

MK = 2/8 – 1/3 = 2/24 Gain

Goodwill = 3,000 + 3,600 + 2,400 = 9,000/3 = 3,000 x 2 = 6,000

MK’s Capital A/c Dr. 500

To GK’s Capital A/c 250

To SK’s Capital A/c 250

**Solution 10:**

Old Share = 5 : 3

New Share = 1 : 1

Calculation of Sacrifice/Gain Share = Old share – new share

Ramdev = 5/8 – 1/2 = 1/8 sacrifice

Shyamdev = 3/8 – 1/2 = 1/8 gain

P/L A/c Dr. 2,000

To Ramdev 1,250

To Shyamdev 750

General Reserve Dr. 1,000

To Ramdev 625

To Shyamdev 375

**Solution 11:**

Old Share = 1 : 1 : 1

New Share = 3 : 2 : 1

Calculation of Sacrifice/Gain Share = Old share – new share

Lagan = 1/3 – 3/6 = 1/6 gain

Magan = 1/3 – 2/6 = No sacrifice no gain

Chagan = 1/3 – 1/6 = 1/6 sacrifice

When they distribute General Reserve

General Reserve Dr. 21,000

To Lagan 7,000

To Magan 7,000

To Chagan 7,000

When they do not distribute General Reserve

Lagan Dr. 3,500

To Chagan 3,500

Lagan = 21,000 x 1/6 = 3,500

Chagan = 21,000 x 1/6 = 3,500

**Solution 12:**

Old Share = 5 : 4 : 2

New Share = 4 : 3 : 2

Calculation of Sacrifice/Gain Share = Old share – new share

SK = 5/11 – 4/9 = 1/99 sacrifice

VK = 4/11 – 3/9 = 3/99 sacrifice

MK = 2/11 – 2/9 = 4/99 Gain

34,900 – 5,200 = 29,700

MK’s Gain = 29,700 x 4/99 = 1,200

SK’s Sacrifice = 29,700 x 1/99 = 300

VK’s Sacrifice = 29,700 x 3/99 = 900

MK Dr. 1,200 To SK 300

To VK 900

**Solution 13:**

Old Share = 3 : 2

New Share = 1 : 1 given

Calculation of Sacrifice/Gain Share = Old share – new share

Ram = 3/5 – A = 1/10 sacrifice

Rahim = 2/5 – A = 1/10 gain

Increase in fixed assets = 5,000

Increase in debtors = 250

Total = 5,250

Rahim’s Capital A/c Dr. 525

To Ram’s Capital A/c 525

**Solution 14:**

Old Share = 3 : 2

New Share = 1 : 1

Calculation of Sacrifice/Gain Share = Old share – new share

A = 3/5 – A = 1/10 sacrifice

B = 2/5 – A = 1/10 gain

Revaluation Account

**Solution 15:**

Old Share = 2:2:1

New Share = 1:1:1

MM’s Sacrifice = 2/5 – 1/3 = 1/15

SS’s Sacrifice = 2/5 – 1/3 = 1/15

JJ’s Gain = 1/5 – 1/3 = 2/15

JJ’s Capital A/c Dr. 400

To MM’s Capital A/c 200

To SS’s Capital A/c 200

(Being goodwill adjusted)

Fixed Assets increase = 7,500

Creditors decrease = 250

Total = 7,750

JJ’s Capital A/c Dr. 1,033

To MM’s Capital A/c 517

To SS’s Capital A/c 576

Retained Earnings Dr. 2,000

To MM 800

To SS 800

To JJ 400

**Solution 16:**

Old Share = 3 : 3 : 2

New Share = 1 : 1 : 1

Sacrifice/Gain

A = 3/8 – 1/3 = 1/24 sacrifice

B = 3/8 – 1/3 = 1/24 sacrifice

C = 2/8 – 1/3 = 2/24 gain

C’s Capital A/c Dr. 3,750

To A’s Capital A/c 1,875

To B’s Capital A/c 1,875

(Being goodwill adjusted)

Goodwill = 10,000 x 4.5 = 45,000 x 2/24 = 3,750

Total Capital = 74,375 + 74,375 + 46,250 = 1,95,000 (now adjusted it in 1 : 1 : 1)

### Brilliant Problems

**Solution 1:**

Profit is given for 5 years but we need profit of 4 years only.

2,00,000 – 1,00,000 + 3,00,000 + 5,00,000 = 9,00,000

Ram Dr. 1,50,000

To Shyam 30,000

To Mohan 1,20,000

**Solution 2:**

Analytical Table

Vinay Dr. 1,35,000

To Suraj 1,35,000

**Solution 3:**

Already distributed = 39,000 + 54,000 – 18,000 + 75,000 = 1,50,000

C’s Capital A/c Dr. 16,000

To A 10,000

To B 6,000