A and B are partners in a firm sharing profits in the ratio of 2 : 1. They decided
with effect from 1st April, 2020, that they would share profits in the ratio of 5 : 3.
But, this decision was taken after the profit for the year ended 31st March, 2019 of
5,00,000 was distributed in the old ratio. The profits for the year ended 31st March, 2018 and 2019 were 3,60,000 and 4,75,000 respectively. It was decided that Goodwill Account will not be opened in the books of the firm and necessary
adjustment be made through Capital Accounts which on 31st March, 2019 stood at 1,50,000 for A and 90,000 for B. Pass necessary Journal entries and prepare Capital Accounts.
Dear Student
Your question is not clear and appears to be incomplete. Profit at 31 march 2019 are given different in two places and method of calculating goodwill is also not given. Recheck your question or please be a
little specific about the name of the chapter/textbook to which you are referring here so that we
can provide you with some meaningful help.
Look forward to hearing from you again!
Regards
Your question is not clear and appears to be incomplete. Profit at 31 march 2019 are given different in two places and method of calculating goodwill is also not given. Recheck your question or please be a
little specific about the name of the chapter/textbook to which you are referring here so that we
can provide you with some meaningful help.
Look forward to hearing from you again!
Regards