A, B, C and D are partners in a firm sha...

A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 : 1. They decided to share profits in future in the ratio of 4 : 3 : 2 : 1. For this purpose goodwill of the firm was valued at Rs. 1,80,000. There was also a reserve of Rs. 60,000 in the books of the firm.
Find out sacrifice and gaining ratio and pass necessary journal entry assuming that partners do not want to distribute the reserve.

Similar Questions

Explore conceptually related problems

A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 : 1. They decided to share future profits and losses in the ratio of 3 : 2 : 2 : 3. For this purpose goodwill of the firm valued at Rs. 1,50,000. There was also a reserve of Rs. 60,000 in the books of the firm. Find out sacrifice ratio and gaining ratio and pass necessary journal entry assuming that reserve is not to be disttibuted.

X and Y were partners sharing profits in the ratio of 2 : 1. With effect from 1st April, 2016, they decided to share profits in the ratio of 3 : 1. For this purpose the goodwill of the firm is valued at Rs. 1,80,000. Give the necessary journal entry.

A and B were partners in a firm sharing profits in the ratio 3 : 2. With effect from 1st April 2016 they agreed to share profits equally. For this purpose the goodwill of the firm was valued at Rs. 30,000. Pass the necessary journal entry.

A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The partners decide to share future profits and losses in the ratio of 2 : 2 : 1. Indicate each partner's gain or sacrifice due to change in ratio.

A, B and C were partners in a firm sharing profits and losses in the ratio of 3:2:1. The partners decide to share future profits and losses in ratio of 2:2:1. Each partner's gain or sacrifice due to change in ratio will be :

P, Q and R were partners in a firm sharing profits in 5:3:2 ratio. They decided to share the future profits in 2:3:5. For this purpose the goodwill of the firm was valued at Rs 1,20,000. In adjustment entry for the treatment of goodwill due to change in the profit sharing ratio.

A, B and C were partners in a firm sharing profits in 4:3:2 ratio. They decided to share future profits in 4:3:1 ratio. Scarificing ratio and gaining ratio will be :

A and B are partners in a firm sharing profits in the ratio of 3 : 2 . They decided to share profits in the ratio of 3 : 4 w.e.f., April 1, 2016. On that date there was journal entry assuming that partners decide to distribute the profits.

Similar Questions

Recommended Questions