Question

A & B are partners sharing profit & loss of a business equally. They decided to change the profit sharing ratio to 3:2. The value of firm’s goodwill (for which no account aears in the book ) on this date is Rs. 5000 . General Reserve is appearing In the books as Rs. 4000. You are required to pass the necessary adjustment journal entry. ​

Answer 1

Explanation:

Sharing of profit ( Old Ratio) = 15000 : 10000 : 5000Sharing of profit ( New Ratio) = 12000 : 12000 : 6000Difference - A Cr. 3000 ; B Dr. 2000 ; C Dr. 1000