Question

A, B and C were partners in the ratio of 5:4:1. On 31st Dec. 2006 their balance sheet showed a Reserve fund of

65,000 and Balance in statement of P&L A/C (Loss) of 45,000. On 1

st January, 2007, the partners decided to change

their profit sharing ratio to 9:6:5. For this purpose goodwill was valued at 1,50,000. The partners do not want to

distribute reserves and losses and also do not want to record goodwill. You are required to pass single journal entry for

the above​

Answer 1

Explanation:

adjust amount

existing good will 65,000

p/l loss (45,000)

nee goodwill 1,50,000

total amt 1,70,000

GR/SR

A = 5/10 - 9/20 = 1/20 SR

b = 4/10 - 6/20 = 2/20 sR

C = 1/10 - 5/20 = 3 /20 GR

c a/c Dr 25,000

to A a/c 8,500

to B a/c 17,000

Answer 2

Answer:

C's capital a/c 25500

to A's capital a/c 8500

to B's capital a/c 17000