Question

Kabir, Divya and Mansha were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. With effect from 1st April 2025, they decided to share the future profits and losses in the ratio of 4 : 1 : 5. For this purpose, the goodwill of the firm was valued at ₹ 3,00,000. The necessary journal entry for the treatment of goodwill because of a change in profit-sharing ratio will be:

विकल्प

• Journal
  Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Kabir’s Capital A/c   ...Dr.	75,000	-
  Divya’s Capital A/c   ...Dr.	2,25,000	-
  To Mansha’s Capital A/c		3,00,000

• Journal
  Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Mansha’s Capital A/c   ...Dr.	3,00,000	-
  To Kabir’s Capital A/c	-	75,000
  To Divya’s Capital A/c	-	2,25,000

• Journal
  Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Mansha’s Capital A/c   ...Dr.	1,20,000	-
  To Kabir’s Capital A/c	-	30,000
  To Divya’s Capital A/c	-	90,000

• Journal
  Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Kabir’s Capital A/c   ...Dr.	30,000	-
  Divya’s Capital A/c   ...Dr.	90,000	-
  To Mansha’s Capital A/c		1,20,000

Answer 1

Journal
Particulars	Dr. Amount (₹)	Cr. Amount (₹)
Mansha’s Capital A/c   ...Dr.	1,20,000	-
To Kabir’s Capital A/c	-	30,000
To Divya’s Capital A/c	-	90,000

Explanation:

Calculate Gaining/Sacrificing Ratio:

Sacrificing Ratio = Old Ratio − New Ratio

Kabir = `5/10 - 4/10`

= `1/10` (Sacrifice)

Divya = `4/10 - 1/10`

= `3/10` (Sacrifice)

Mansha = `1/10 - 5/10`

= `(-4)/10` (Gain)

Calculate Value of Share:

Firm’s Goodwill = ₹ 3,00,000

Mansha’s Gain = `3,00,000 xx 4/10`

= 1,20,000

Kabir’s Sacrifice = `3,00,000 xx 1/10`

= 30,000

Divya’s Sacrifice = `3,00,000 xx 3/10`

= 90,000