Nidhi, Vidhi and Kavya 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 |
Nidhi’s Current A/c (₹ 2,00,000 ✕ 3/25) Dr. Kavya’s Current A/c (₹ 2,00,000 ✕ 2/25) Dr. To Vidhi’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]
Solution:-
