Partnership Change in PSR Notes5 Study Material & Notes for the Chapter 3 Partnership - Change in Profit Sharing Ratio V. ADJUSTMENT OF CAPITAL    Applicable when Partners decide that the capitals shall be in their profit-sharing ratio   STEPS Compute the new profit-sharing ratioCompute partners’ existing capital post adjustment of Revaluation, Reserves Accumulated losses & Goodwill etc.Determine firm total capital which is the sum-total of existing capital of all the partnersCompute the New Capital of each partner by multiplying Total Capital with his new shareCompare the new capital with existing capital and any shortfall to be brought in and excess is refunded