4. Gold, Silver and Diamond were equal partners. They decided to change the profit sharing ratio
to 4 : 3 : 2. For this purpose the goodwill of the firm was valued at Rs. 90,000.
The journal entry for the treatment of Goodwill on change in profit sharing ratio will be :
Particulars Debit
Amt.
( Rs.)
Credit
Amt.
( Rs.)
a) Diamond’s Capital A/c Dr.
To Gold’s Capital A/c
10,000
10,000
b) Silver’s Capital A/c Dr.
To Gold’s Capital A/c
10,000
10,000
c) Gold’s Capital A/c Dr.
To Diamond’s Capital A/c
90,000
90,000
d) Gold’s Capital A/c Dr.
To Diamond’s Capital A/c
10,000
10,000
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Answer:
(c) golds capital A/c Dr.
To diamonds captial A/c
90, 000
90,000
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