Question:medium
Pronnil, Kamlesh and Ritika were partners sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2025 they decided to share future profits in the ratio of 2 : 3 : 5. Their Balance Sheet as at 31st March, 2025 was given.
Adjustments:
(i) Land and Building revalued at ₹6,62,000
(ii) Provision for doubtful debts @5% on debtors
(iii) Goodwill valued at ₹1,80,000 (without opening goodwill account)
(iv) Stock reduced to ₹2,00,000
Pass necessary journal entries.
Pronnil, Kamlesh and Ritika were partners sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2025 they decided to share future profits in the ratio of 2 : 3 : 5. Their Balance Sheet as at 31st March, 2025 was given.
Adjustments:
(i) Land and Building revalued at ₹6,62,000
(ii) Provision for doubtful debts @5% on debtors
(iii) Goodwill valued at ₹1,80,000 (without opening goodwill account)
(iv) Stock reduced to ₹2,00,000
Pass necessary journal entries.
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When goodwill is adjusted without opening goodwill account:
Debit gaining partner and credit sacrificing partner in sacrificing ratio.
Always calculate sacrificing ratio carefully.
Updated On: Feb 26, 2026
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