CHANE N PRofT SHARIND RATID

AMON THE AsÅng PARTNERS

Chonge in proit Sharing ratjo meow reconstHuHon of

Pothorshp rm.
meO ony chonge in exising 9aeemc betuocen

pothrsS.

l+1s abo oissoluHon o

cnoLon os
Pothershi
ReconsHution hobpew in
ollowg cascs
.chonge in
frofit Shaving voio
2 Admisshon Poxther
5 Reirement 1Deoth o Parvtmerc
4Amalgomotion ot too or
moreTm6-
Adju Stment to be donc is Case
of change in PsR
.ColculatHon o
Sacriíeini luuning Ratio
2 Treame ut 0odol
5IYectmeut Bl reserues, accu
mdiafed Protitk T0SS GS
4Kecoitutien o aMet and reassemeut oj liobiliHes
.AdjuSt meut o capita
6 repraHon reconsHtuted bdlan ce 8h eet (with or withou
Ccpital adjustmeut)

SACRIfICIN RATIO

The par+her whose Shate o deCrease due to Change

change
in proit Shoring ratio is Pnouon ag So criicing t h eT
Rao n ohich Partner"
one o more borther socriicing
mose
Sacrifce hr pront shou indavoun od
duity Parthers
decrea8e
Sacripcing farther The pomther uOhose Share
enoOn 0
du in PsR is
change
Change
Sacrificing porHher
Calculedtion Socrifcing and havu ng Rao
=Old share NeO ShaYe
A KXX xx socrpciug
8

AININ NIN RATIO

Rato n oich
shaus Tom u
more gcu niu Pathe ain propt
more saCricins pavner

icnin forsHmer
T Parthe whose Sh ,Pror ncrease due to
chana
Pis/R cnouo C
ning Pher

calculaon nainíng Ratio

Neu Shase 0id Share
X X* R x hoùning

KX
=(x) sacrici uy
NEN RAT ID old Ratio +/- ein sacipee fao

ACcouNTINGTREATMENT OF GtooDILL

In case change
change in fyotit Ghoving Tadio goning roier
Compensatt the sacrifcin9 Ponev8 t0r their SOcrtic
n dutuye prot S is cnoon C hood o i i o Premium o

h Godtoil)

Amouut o com penseorfon-Vaifue o noduott x 3harre o roh

batance shee is
lhen ago0duoihis not oppering in the
Enouon a gooduo volued

aining PasttherS copitat Atc Di

TD
Sacriícing postheS capiselc
(Being gcoduoh odjusted among Yortners)

When goodeoi appcari na in the b alon ce sheet d

knouon ad
exísting aodwí1
Pattnexs copital le-DY XX
To CicDdwi X
ASH
(Bevg odduoi wrten )
 AccoUNTING TREATMENT OF RESERVES AND ACCOMDLATE
PROFITS OR LOSSE&

AnH Tesesv eS, a cCumuldted prop 1S 106 S cS 0Y Deerred Revenue

xpe nditye oppeoing balance sheet on the date

TeconsttHuiO n are to be transevTcd potner & Copita
Current Alc in old

For transer d Keser

Reserve AlG D
T0 Pavther"S cqpita curent
(old PsR
*Por ranser Accumulated froits
Proi+ and 10ss (ce beu) AlG -0r KKX

To PaytherS captel cur

Acumalted losses 3 DRE
for
For rans o

Pavtner's cuTYEt AiG DY

CaP
To PsL (DT.bai)
To DRE

Meanin
AccuMulated Proit I+ tejeYs totha net protit remani ng
oter divi dend Paymeud have been made to Stock-
ho lder s. It alo tesmec a accumuloted caning
Teteuud earu oY undis1ri buted
income
undisributed tiab side
PL(CT badonce)
Propts
 accumuldtcd JoSses descibcd Such
ACCumulated 1osses-Means the

To +h Ye lev onf of
, Or deiermined by reeene
the bovrouoer.
nancia stateeuli o

undístmbuu ASS e
oSSe side or PRL(Drbal)
81S

+o the amount hat is SCt aside but

Reserves -1+ HeerS
PotS and 0ther sUrplu s to meet u+ture

unceauntics »

eg-otenera reserve, Coningency Re8 woEmen Compcncotio

resve9 Inve SttoEnt lucu otHO Reserue

oliab. s'ide balonce sheef

DRE - Dejerred TevenUE expenditure is an expend iture

hich Sevenu n ngture a n d inCuTed

during an
accountÅ ng peri0d, houdever reiate d benehtsS
be derived in multiple uuye acco unHng feriod

ASsets s ise ot bls Cg AdUt SUspense AHC

Treatment specid Reserve s

WoTFmeD CompensotHon Re scwe InveStment HucaHon Resv

NoYEmen CompensaHon Reseve i

0 e serve creatcd out PTopt to mect possibe

obit o oTkeYs / employec'8 clau úu compeh sation
Ppeube accide.
eWhen Claum agc ht WorEMEN compenSoti on docs not

eist or onorma-Hon isiven agowt claám

lbrkmen AHG Dr
Compensotion Re serve
Alc
To partheTS capitol/CUTsent
n
Being the a o u n t D C R dísti buted to parthers
Hhr oid Propt Shosina roio)

Nhen claüm s louoer than WCR

wibrEmen compensotSon Reserve -DXXx

To provision or wCR claim Atc
TO POT4ers eopiyei lcUrYe nt mc

6eng tronsyer o surplus w cR + por+ners capita lc

nHu 0ld PsR)
When claum is Hgher thon wcR
WoTemen Co mpense Hon ReseTuc Ao -D
Revoluoor Ac -D
To Psouision o Wor Emen compensotion eceve Ky

Beng e prouís ion created and Shot}au choged to

evoluaHon

fotherS capito cuvrent AG D Xx

To RevoluoHon AlC

(Being the ronser o 10SS on oER ctdm revoluccton

to pa theYS capitd) Hc)

lhen olam s e uad to cR

wor Emen compenSaio n Reserve MG Dr

To CR cloim

(Beng te pTovis'i on made tos esHmaled weR

ci)
 INVESTMENT FLuCTOATION RESCRVE

to
s a 1eserve Ccatcd out o Propits 0Tigino
cstmen t toT 11s
in morEet príce MorEct
va lue o
CoSt

lhen no normaHon morket Price is g'veh 0T *here

Me n0 chongen motet ValuL investment

Inve Stmen u c t O-ion Resewe AlG Dr

povtner'S copito/ cUTYent Mc

(Being

less thon CPR

invcstment is
Wlhen tal in vo lue
AlG Dr
Lovestmen lu cHIOHon ReseYye
To inves+ment AAC
KKX
TD Porh e"S co ptal/curent

When a in value e nvestment is move thán AR

LnvesHment u CHuOtion Resve Alc-DY KXx

Reuo luotion c

TO investnent AtC XXX

Poxthey's coptal/current Alc D

To Revatuation XXX

ís eoua to IfR
n volus o investment
When to

Investment luctuotio n Rescrve Atc Dr XXX

To Inves+ment AC
 onvestment increasSe
Wben martet+ Volu

Investmen tluctao-ion cseTvc AlCD XXY

To Pa+her's copi+o1/curent AlC XAY

nve stment Alc

Reuol uction C

fartneS capitol/current AHC DY

KKX
To Revoly o ion AHC

DRC tC
Treament CseTVEs ACCumulattd proih S/10 SSCS
6in singic Adjustment lC

ha balance o
Tu Concept u uSed 8ueston says
eserve , accu mulote PL DRE etG. uw to be con4inued
tHhe re cons+itHed balance Shect a ther originol value

'dolloui n8 accoun ting adjustmentS

Resesv es
PAL (CT) AC Protit
D R (x*)
PAL CP0) ACC iosses (RRn)

Net ec

When osifue() balance n Net Hect

oWhen

aining Yother"s cop'o1/CUTent Alc -D XXx

XXX
Tb Sac capíto)current AC
When Negatue balonce in Ne iect

Sac Pa Hhe% S caphollcursent Al

0

To brcd ning povther cap-/cu'rT

ReVALUAT 1ON DF AssETS REASSEMENT of LIABILITIES

Hme o TcConsHHutions irsm, a3Sets evoiud and

At the
iobiliies ate t eassed ond on Profi |10S8 ae disributed to

the patHe Ys in ther old PSR

For purpose RevoluatÁon ic° preporcd

Revaluaion Alc Nomino1 AtC
Parcula4S Amt Paticuaus Am
To ASSe+s AC KAX
B Asset Alc XX
(Decyease) inceose)
To iobitiies HC By fobiiies A XXX

incTease) CDecrease)
To unTe covde d
Mob uYe.corded ASSetX KX
To
fortners cop|cu AC XX 6 loss on RevoluotHon
TD Cosh ]bon AC XX
Tb Proit on
RevakustHon

X Xx
XXX

Journol Entrias

Lnereo 6e in A86e
Asset s -Dr
To Revo luotfon AC
 Decrease in 1obiiHles

iabiiies AlC D XXX

To Revoiuotion AlC xX

ecrcosc in AssctIncregsc, in iabiities

Kevoluaion Alc Dr AX
TO ASset AHC
To Liabiities Mc

Unyecovded A SsCtS

unrecorded ASSet AHCDY

To Revlua ion
AC

eUnTecaTded abies
Revaluotion AC Dr
To UnTeCorded i ob 6

Expenses on recon stHtion

When Temunerotion is paúd

+o pavther

KevoluaÅon AC-D X*
T paHEr'S cap/eurr Aic xAX

Borne by fa ther but Pas by

PavHner cop| cur Alc -D

TO Cauh/bau Alc

Sorn ond fadd by r

Reva uati on Atc-ma
To ccuth pau KK
froiton Revaluchon
Revoluaion AlC DY XAX
TDPather Coplcur Alc

RevaluaHon

favtnesS cap (cUTient MC -D

To Revo luation Alc XX

AsSetS+aFen over by Pather

Example- Beo otu ASSct S 124 OY

ase- Yomt ne taes oVer C Og ecd yolue 14-1roo

Asset AC D 2, CYO
To Revotuotion Alc 2

arthes cop euvrent Atc-D 12,0o

To ASc+ AHC 2 C

Case ) Yarher +oes 6ves 08set 0gced volue

o1010
Reveluahon AlC 2,0YO

ToASSct+ 2,

amthes capl cusYent c - Dr 10, YO

1o A SSe ANC

case D Pastners 1a 6Ve a

ov+iers coplcurem MG-D I2.0

T6 ASse Alc 12O

#ReYALUATION O AsS ETS/REASSEMENT oP LIABILITY USIN SINbU
AOJ UST MENT ENTRY

Tu concept uscd 8uestion sosthat AS se+didbiiiie.s are

to be Yetaú ned in Tecon stitted bolonce sheet a t h i r old vajue s

CalcutoHon o Net
cct
ncvease AsSet XX

DecycOse in idbi.
Decveose in AS Set
(R)
ncreose in ob (x)
Net eect

PosiHve (+) baloan ce in Net

eddect
Meou protit on Revotuatlon
uning forther
coplcurent AlG-
D[NExHS
lo Soc
porHer coplcUTrent eNExS S R

Negertiue (-)balance nNet dect

MeO 10ss Dn seva lu0Hon

Soc par+her cap/euTTent AHC -D CNGKS-S) X

To breuning fovtner
cop /eur

ADTUSTMENT Of CAPITAL

Tuis concept opplfcoble Duestion SaysHhout 6

copital
the patther w be/ are to be adjusted according to
Ne prj+ Shang ratio.

n Such Gase,closing apitol odhe pothcr qre colculated

iTst and
SUTplus/dejicienru is
adjusted tmougb
 Cash Ac.| Bonf AMC O pornes 7 d
CU*enH AMC.

here ae some 8teps to

be olloued
LCalculote. total
copitol D the recostltuie rm
SuPpose Here aTe +wo pothe rs A 8.

Copito) o A(tr al
adjustmet) KX

CopHo s(4te a odjustmen) Xxx

Tbta capi+ FTm
XXX

2 Divide the iorta1

capitaj i Neud rotit
Portherts fn be closing eapitol Sharing rdHO
am6ng stth

3Calcutote deer mì ne he
búoncing tigure oj each
portheri'S co
pia i
fanther'S eapit0 AlC
Panaic ulas s
B Pa-fcularv s A
B
By ba
pe By bo 8

I bol-
a is on debit side
bol tig is on credit
S side
urplus (to be
paid)withdroon
PaTtner
by
Deccit to be
brough
b Porther)
ora-+nesS Copitol Ac D K
lo Cosh bone Alc oY Casb 6Ban Alc-pr
cUssem mo CUTTent Atc

To part cop Ac