Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ram, Laxman and Bharat, who were sharing profits and losses in the ratio of 5 : 3 : 2, decide to share profits and losses equally with effect from 1st April, 2025. Goodwill of the firm is valued at ₹4,50,000. Goodwill appearing in the books is at ₹75,000. Pass the necessary Journal entries to record the above change.
Sacrifice / (Gain): Ram = 5/10 – 1/3 = 5/30 (Sacrifice); Laxman = 3/10 – 1/3 = –1/30 (Gain); Bharat = 2/10 – 1/3 = –4/30 (Gain).
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Apr 1 | Ram’s Capital A/c Dr. | 37,500 | ||
| Laxman’s Capital A/c Dr. | 22,500 | |||
| Bharat’s Capital A/c Dr. | 15,000 | |||
| To Goodwill A/c | 75,000 | |||
| (Existing goodwill written off in the old ratio 5 : 3 : 2) | ||||
| 2025 Apr 1 | Laxman’s Capital A/c Dr. (4,50,000 × 1/30) | 15,000 | ||
| Bharat’s Capital A/c Dr. (4,50,000 × 4/30) | 60,000 | |||
| To Ram’s Capital A/c (4,50,000 × 5/30) | 75,000 | |||
| (Adjustment of goodwill on change in profit-sharing ratio) |
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.9 - 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Chapter 3 Q.9 - Change in Profit-Sharing Ratio Among the Existing Partners" instantly.