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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Nidhi, Vridhi and Kavya are partners sharing profits and losses in the ratio of 2 : 2 : 1. From 1st April, 2025, they decide to change the profit-sharing ratio. They pass the following adjustment entry for goodwill: Nidhi’s Current A/c Dr. ₹24,000 (2,00,000 × 3/25) and Kavya’s Current A/c Dr. ₹16,000 (2,00,000 × 2/25) To Vridhi’s Current A/c ₹40,000 (2,00,000 × 5/25). What will be the new profit-sharing ratio of the partners, assuming the capitals of partners are fixed?
Since their Current Accounts were debited, Nidhi gained 3/25 and Kavya gained 2/25; Vridhi’s Current Account was credited, so Vridhi sacrificed 5/25.
New Share = Old Share – Sacrifice (or + Gain):
New Profit-Sharing Ratio = 13 : 5 : 7.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 3 Q.11 - Change in Profit-Sharing Ratio Among the Existing Partners", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 3 - Change in Profit-Sharing Ratio Among the Existing Partners.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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