17. Yashasvi, Nitish and Harshit were partners sharing Profit &Loss in the ratio 5:3:2. W.e.f 01 April, 2025, they decided to share future Profit &Loss in the ratio 4:3:2. On the date of reconstitution Goodwill was appearing in the books of Rs 4,00,000. Goodwill of the firm was valued at Rs 7,20,000 on the date of reconstitution. Determine gain or sacrifice for each partner and pass necessary entries.
Solution :-
Yashasvi’s Gain/sacrifice = 5/10 – 4/9 = 5/90 – Sacrifice,
Nitish’s Gain/sacrifice = 3/10 – 3/9 = (-) 3/90 – Gain and
Harshit’s Gain/sacrifice = 2/10 – 2/9 = (-) 2/90 – Gain
Working Notes :
Adjustment of Goodwill appearing in the books
Yashasvi = 4,00,000 x 5/10 = Rs 2,00,000
Nitish = 4,00,000 x 3/10 = Rs 1,20,000
Harshit = 4,00,000 x 2/10 = Rs 80,000
Adjustment for Goodwill
Yashasvi = 7,20,000 x 5/90 = Rs 40,000 (Credit)
Nitish = 7,20,000 x 3/90 = Rs 24,000 (Debit)
Harshit = 7,20,000 x 2/90 = Rs 16,000 (Debit)