P. Q and R are partners sharing profits equally. They decided that in future R will get 1/7 share in profits. On the day of change, firm's Goodwill is valued 42,000: Give Journal Entries arising on account of change in profit sharing ratio.
R’s share of goodwill =42,000/7
=6,000
Sacrificing ratio=1:1(partners share profits equally)
Journal entry:
R’s capital a/c. Dr. 6,000
To P’s capital a/c. 3,000
To Q’s capital a/c. 3,000
1
Arushi answered this
Apologies!!!!
The above answer is an incorrect answer
