ONS
• A, B and C are the partners sharing profits and losses in the ratio of 2:2:1. They changed the ratio to
3:4:5. They had workmen's Compensation Fund. How it will be distributed on the change of ratio?
Answers
Answer:
, B & C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To gave effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.
B's Capital A/c Dr.
C's Capital A/c Dr.
To A's Capital A/c 2,000
1,000 3,000
Goodwill A/c Dr.
To A's Capital A/c
To B's Capital A/c
To C's Capital A/c 30,000
12,000
12,000
6,000
A's Capital A/c Dr.
B's Capital A/c Dr.
C's Capital A/c Dr.
To Goodwill A/c 12,000
12,000
6,000 30,000
A's Capital A/c Dr.
To B's Capital A/c
To C's Capital A/c 3,000 2,000
1,000
Explanation: