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प्रश्न
A and B are partners sharing profits and losses in the ratio of 3 : 1. It was decided that with effect from 1st April, 2024 the profit sharing ratio will be 5 : 3. Goodwill is to be valued at 2 years' purchase of average of 3 years' profits. The profits for the year ending 31st March 2022, 2023 and 2024 were 36,000, ₹32,000 and 40,000 respectively.
Pass the necessary journal entry for the treatment of goodwill.
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उत्तर
| Journal Entries | ||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Dr. ₹ | Cr. ₹ |
| B's Capital A/c Dr. | 9,000 | |||
| To A's Capital A/c | 9,000 | |||
Working note:
Old profit-sharing ratio:
A : B = 3 : 1
New ratio:
A : B = 5 : 3
1. Calculate Goodwill
Average profit of 3 years:
`(36,000 + 32,000 + 40,000)/3`
= (1,08,000)/3
= ₹ 36,000
Goodwill = 2 years' purchase of average profit:
₹ 36,000 × 2 = ₹ 72,000
2. Calculate Gain or Sacrifice
A
Old share: `3/4`
New share: `5/8`
Sacrifice: `3/4 - 5/8 = 6/8 - 5/8 = 1/8`
So, A sacrifices 1/8.
B
Old share: `1/4`
New share: `3/8`
`1/4 - 3/8 = 2/8 - 3/8 = -1/8`
Therefore, B gains 1/8.
Thus, B must compensate A for the sacrifice.
3. Goodwill Adjustment
A's sacrifice:
₹ 72,000 × `1/8`
= ₹ 9,000
