Question

Avya, Divya and Kavya were equal partners. They decided to change the profit-sharing ratio to 4 : 3 : 2. For this purpose, the goodwill of the firm was valued at ₹ 90,000. The journal entry for the treatment of goodwill on change in profit sharing ratio will be:

पर्याय

• Particulars	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
  Kavya’s Capital A/c    ...Dr.		10,000	-
  To Avya’s Capital A/c		-	10,000

• Particulars	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
  Divya’s Capital A/c    ...Dr.		10,000	-
  To Avya’s Capital A/c		-	10,000

• Particulars	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
  Avya’s Capital A/c    ...Dr.		90,000	-
  To Kavya’s Capital A/c		-	90,000

• Particulars	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
  Avya’s Capital A/c    ...Dr.		10,000	-
  To Kavya’s Capital A/c		-	10,000

Answer 1

Particulars	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
Avya’s Capital A/c    ...Dr.		10,000	-
To Kavya’s Capital A/c		-	10,000

Explanation:

Avya’s Gain = `4/9 - 1/3 = 4/9 - 3/9 = 1/9`

Kavya’s sacrifice = `1/3 - 2/9 = 3/9 - 2/9 = 1/9`

Thus the sacrificing value of goodwill is `1/9 xx ₹ 90,000` = ₹ 10,000 which will be transferred from Avya (Gaining Partner) to kavya (Sacrificing Partner)

Thus, sacrificing value of goodwill is ₹ 10,000.