11 :- Nidhi, Vidhi and Kavya are partners sharing profits and losses in the ratio of 2 : 2 : 1. From 1st April 2025, they decide to change the profit-sharing ratio. They pass the following adjustments entry for goodwill in the books
What will be the new profit sharing ratio of partners assuming capital of partners are fixed?
Solution:- Calculation of new profit sharing ratio
Old ratio of Nidhi, Vridhi and Kavya is 2:2:1
As per questions, their gain and sacrifice are as follows
Nidhi = 3/25 (gain)
Vridhi = 5/25 (sacrifice)
Kavya = 2/25 (gain)
Nidhi’s new share = 2/5 + 3/25 = 13/25
Vridhi’s new share = 2/5 – 5/25 = 5/25
Kavya’s new share = 1/5 + 2/25 = 7/25
Therefore, new profit sharing ratio of Nidhi, Vridhi and Kavya is 13:5:7
Question 1 to 4 (Sacrificing and Gaining Share)
Question 5 (Calculation of Old Profit – Sharing Ratio on the basis of Sacrificing and Gaining share)
Question 6 to 10 (Accounting of goodwill)
Question 11 (Calculation of New Profit – sharing ratio on the basis of Adjustment of goodwill)
Question 12 to 16 (Accounting of Reserves, Accumulated Profits and Losses)
Question 17 to 20 (Accounting of Reserves, Accumulated Profits and Losses)
Question 21 to 24 (Accounting of Reserves, Accumulated Profits and Losses)
Question 25 to 28 (Revaluation of Assets and Reassessment of Liabilities)
Question 29 to 30 (Preparation of Balance Sheet)
Question 31 to 32 (Adjustment of capital)