Question

Change in profit sharing ratio among the existing partners old x/2:y/1, new 3:1 goodwill 180000

Answer 1

We know that

Sacrificing share = Old share - New share

A's Sacrifice

=Old share - New share

=2/3 - 3/4

= -1/12 ( As the share is in negative, A gains upon change in Profit sharing ratio)

B's Sacrifice

=Old share - New share

=1/3 - 1/4

=1/12

Hence goodwill should be distributed in 1/12 ratio (sacrificing share)

in the form

Gaining partners A/c ....Dr

            To Sacrificing Partners A/c

Hence goodwill share to be adjusted will be 1/12 of 180000 i.e. 15,000.

Therefore, final entry will be

Gaining partners A/c ....Dr  15000

            To Sacrificing Partners A/c  15000