CBSE Class 12-commerce Answered
answer of book = sumitra capital a/c DR. 5000 ; Amrita capital a/c CR. 5000
Asked by mahendraprasad74 | 08 Apr, 2019, 12:57: PM
Expert Answer
In the event of change in profit sharing ratio between the partners, it is necessary to identify the sacrifice or gain made by the partners in the event of such change.
In the given question, the ratios have changed from 3:2 to 1:1 as the partners have decided to share the profits equally. Therefore,
Amrita = 3/5 - 1/2 = 1/10 (sacrifice)
Sumitra = 2/5 - 1/2 = -1/10 (gain)
Amrita = 3/5 - 1/2 = 1/10 (sacrifice)
Sumitra = 2/5 - 1/2 = -1/10 (gain)
For passing the adjustment entry Sacrificing Partner's Account is debited and Gaining Partner's Account is credited.
Therefore, in the given question also, journal entry for adjustment will be:
Sumitra's Account ...Dr.
To Amrita's Account
(being the goodwill adjusted on change in profit sharing ratio)
(being the goodwill adjusted on change in profit sharing ratio)
Answered by Surabhi Gawade | 09 Apr, 2019, 10:02: AM
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