Naman, Aman and Raman are partners sharing profits and losses in the ratio of 2 : 2 : 1. From 1st April 2023, they decide to change the profit-sharing ratio. They pass the following adjustments entry for goodwill in the books:
Naman, Aman and Raman are partners sharing profits and losses in the ratio of 2 : 2 : 1. From 1st April 2023, they decide to change the profit-sharing ratio. They pass the following adjustments entry for goodwill in the books:
Date
Particulars
L.F.
Dr. (₹)
Cr. (₹)
2023
April 1
Naman’s Current A/c (₹ 2,00,000 ✕ 3/25) Dr.
Raman’s Current A/c (₹ 2,00,000 ✕ 2/25) Dr.
To Aman’s Current A/c (₹ 2,00,000 ✕ 5/25)
(Goodwill adjusted on change in profit sharing ratio)
24,000
16,000
40,000
What will be the new profit-sharing ratio of partners assuming the capitals of partners are fixed?
[Ans.: New Profit sharing Ratio – 13 : 7 : 5]
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