Question

Kartik, Inder, and Lalit were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 2 : 3 : 4. For this purpose, the goodwill of the firm was valued at ₹ 1,80,000.

The necessary journal entry to show the effect of the above will be:

विकल्प

• Date	Particulars	Debit Amount (₹)	Credit Amount (₹)
  	Lalit’s Capital A/c   ...Dr.	40,000	−
  	To Kartik’s Capital A/с	−	40,000

• Date	Particulars	Debit Amount (₹)	Credit Amount (₹)
  	Kartik’s Capital A/c   ...Dr.	40,000	−
  	To Lalit’s Capital A/c	−	40,000

• Date	Particulars	Debit Amount (₹)	Credit Amount (₹)
  	Lalit’s Capital A/c   Dr.	1,80,000	−
  	To Kartik’s Capital A/c	−	1,80,000

• Date	Particulars	Debit Amount (₹)	Credit Amount (₹)
  	Kartik’s Capital A/c   ...Dr.	1,80,000	−
  	To Lalit’s Capital A/c	−	1,80,000

Answer 1

Date	Particulars	Debit Amount (₹)	Credit Amount (₹)
	Lalit’s Capital A/c   ...Dr.	40,000	−
	To Kartik’s Capital A/с	−	40,000

Explanation:

Old profit sharing ratio = 4 : 3 : 2

New profit-sharing ratio:

Gaining ratio = New share – old share = 2 : 3 : 4

Kartik's gain/sacrifice = `2/9 - 4/9`

= `(-2)/9` (Sacrifice)

Laliťs gain/sacrifice = `4/9 - 2/9`

= `2/9` (Gain)

Gaining a partner, Lalit will compensate the sacrificing partner, Kartik, for his gain

Lalit willpay Kartik = `1,80,000 xx 2/9`

= ₹ 40,000