CBSE 2025, Set 1

Question

(a) Kartik, Inder and Lalit were partners in a firm sharing profits and losses in the ratio of 4:3:2. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 2:3:4. For this purpose, the goodwill of the firm was valued at ₹ 1,80,000. The necessary journal entry to show the effect of the above will be: A). Lalit's Capital A/c Dr. 40,000; To Kartik's Capital A/c 40,000 B). Kartik's Capital A/c Dr. 40,000; To Lalit's Capital A/c 40,000 C). Lalit's Capital A/c Dr. 1,80,000; To Kartik's Capital A/c 1,80,000 D). Kartik's Capital A/c Dr. 1,80,000; To Lalit's Capital A/c 1,80,000

Edvaya · Accepted Answer

The correct answer is Lalit's Capital A/c Dr. 40,000; To Kartik's Capital A/c 40,000. (A) Lalit's Capital A/c Dr. 40,000; To Kartik's Capital A/c 40,000 **Explanation:** Kartik's Sacrifice = 4/9 - 2/9 = 2/9 Inder's Sacrifice = 3/9 - 3/9 = 0 Lalit's Sacrifice = 2/9 - 4/9 = -2/9 (Gain) Gaining partner is debited and sacrificing partner is credited with proportionate goodwill. Amount = 1,80,000 × 2/9 = ₹ 40,000. | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Lalit's Capital A/c ...Dr.     To Kartik's Capital A/c | | 40,000 | 40,000 |

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Accountancy > Accounting For Partnership Firms > Change In Profit Sharing Ratio

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