State the ratio in which the partners share accumulated profits when there is a change in the profit sharing ratio - Accountancy - Reconstitution- Change in Existing Profit Sharing Ratio

Question

State the ratio in which the partners share accumulated profits
when there is a change in the profit sharing ratio among existing
partners

Tanu Jain · Accepted Answer

Dear Student,
Adjustment in case of accumulated profit is done in two ways:
1 When profits are to be shown in new balance sheet than profit
will be distributed in gaining and sacrificing ratio

Date
Particulars
LF
Debit (Rs )
Credit (Rs )

Gaining partner's capital A/c Dr
To Sacrificing partner's capital A/c
(Being adjustment made through partner's capital account)

2 When profits are not to be shown in new balance sheet than
profits will be distributed in old profit sharing ratio

Date
Particulars
LF
Debit (Rs )
Credit (Rs )

Profit and reserve A/c Dr
To partners's capital A/c
(Being profit distributed to partners capital A/c)

Partner's Capital A/c Dr
To Profit and losses A/c
(Being losses distributed to partner's capital a/c)

Regards,

Date	Particulars	LF	Debit (Rs.)	Credit (Rs.)
	Profit and reserve A/c Dr. To partners's capital A/c (Being profit distributed to partners capital A/c)
	Partner's Capital A/c Dr. To Profit and losses A/c (Being losses distributed to partner's capital a/c)

State the ratio in which the partners share accumulated profits when there is a change in the profit sharing ratio among existing partners