19 :- Anu, Manu, Sonu and Rohan were partners in a firm sharing profits and losses in the ratio of 1:2:1:2. With effect from 1st April,2023, they decided to share profits and losses in the ratio of 2:4:1:3. Their balance sheet showed general reserve of Rs 90,000. The goodwill of the firm was valued at Rs 4,50,000. Pass necessary Journal entries for the above on account of change in the profit – sharing ratio. Show your working clearly.
Solution :-
WORKING NOTES :-
- Calculation of their gaining/sacrificing share
Old share – new share
Anu = 1/6 – 2/10 = -2/60 (gain)
Manu = 2/6 – 4/10 = -4/60 (gain)
Sonu = 1/6 – 1/10 = 4/60 (sacrifice)
Rohan = 2/6 – 3/10 = 2/60 (sacrifice)
- Calculation of their share of goodwill
Anu’s share of goodwill = 4,50,000 x 2/60 = Rs 15,000 (Dr.)
Manu’s share of goodwill = 4,50,000 x 4/60 = Rs 30,000 (Dr.)
Sonu’s share of godowill = 4,50,000 x 4/60 = Rs 30,000 (Cr.)
Rohan’s share of goodwill = 4,50,000 x 2/60 = Rs 15,000 (Cr.)