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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Asha, Nisha and Disha shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April, 2025, they agreed to share profits equally. The goodwill of the firm was valued at ₹18,000. Pass the necessary Journal entry for the treatment of goodwill on the change in the profit-sharing ratio.
Sacrifice / (Gain): Asha = 3/6 – 1/3 = 1/6 (Sacrifice); Nisha = 2/6 – 1/3 = Nil; Disha = 1/6 – 1/3 = –1/6 (Gain).
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Apr 1 | Disha’s Capital A/c Dr. (18,000 × 1/6) | 3,000 | ||
| To Asha’s Capital A/c | 3,000 | |||
| (Adjustment of goodwill on change in profit-sharing ratio – gaining partner compensating the sacrificing partner) |
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.6 - 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.
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