X, Y, Z are equal partners. They have decided to change their profit sharing ratio as 3 : 2 : 1. At the time of the change in ratio, General Reserve amounted to ₹6,000, which they want to carry forward in reconstituted partnership. To record the above, following journal entry will be passed:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → X's capital A/c Dr. ₹1,000 To Z's capital A/c ₹1,000
When the reserve is carried forward and not distributed, the partner who gains from the new ratio must compensate the partner who sacrifices, for his share of the reserve. This is the same gaining-sacrificing adjustment the book applies to goodwill on a change in ratio.
Old ratio = 2/6 : 2/6 : 2/6; New ratio = 3/6 : 2/6 : 1/6
X: 3/6 − 2/6 = 1/6 gain; Y: nil; Z: 1/6 − 2/6 = 1/6 sacrifice
Amount = ₹6,000 × 1/6 = ₹1,000
X’s Capital A/c Dr. ₹1,000; To Z’s Capital A/c ₹1,000
NCERT (2026-27 edition):
|
