Jain and Gupta were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 1. On 1st April, $\displaystyle 2024$, Agarwal was admitted as a new partner for $\displaystyle 1$/5th share in the profits of the firm with a minimum guaranteed amount of ₹ $\displaystyle 75$,000. Any deficiency arising out of this account will be borne by Jain and Gupta in the ratio of $\displaystyle 1$ : 3. During the year ended 31st March, $\displaystyle 2025$, the firm earned a net profit of ₹ $\displaystyle 3,00$,000. Prepare Profit and Loss Appropriation Account of Jain, Gupta and Agarwal for the year ended 31st March, 2025.

OR

Annu, Bandhu, Sheelu and Golu were partners in a firm sharing profits and losses in the ratio of $\displaystyle 4$ : $\displaystyle 3$ : $\displaystyle 2$ : 1. On 1st April, $\displaystyle 2025$, they decided to share the future profits equally. For this purpose the goodwill of the firm was valued at ₹ $\displaystyle 4,00$,000. Calculate gain or sacrifice of the partners on change in profit sharing ratio and pass a single adjustment journal entry for the treatment of goodwill.

Books of Jain, Gupta and Agarwal Profit and Loss Appropriation A/c Dr. for the year ending $\displaystyle 31$ March $\displaystyle 2025$ Cr. Particulars Amount(₹) Particulars Amount (₹) To Partners' Capital A/cs: $\displaystyle 3,00,000$ By Profit and Loss A/c (for share of profit) (Net Profit) ½ Jain $\displaystyle 1,80,000$ Less: Deficiency ($\displaystyle 3750$) $\displaystyle 1,76,250$ $\displaystyle 1$ Gupta $\displaystyle 60,000$ Less: Deficiency $\displaystyle (11,250)$ $\displaystyle 48,750$ $\displaystyle 1$ Aggarwal $\displaystyle 60,000$ Add: Deficiency ½ recovered from: Jain $\displaystyle 3,750$ Gupta $\displaystyle 11,250$ $\displaystyle 75,000$ $\displaystyle 1$ $\displaystyle 3,00,000$ $\displaystyle 3,00,000$ Q.(b) Annu, Bandhu, Sheelu and Golu were partners ………………. Ans. Calculation of gain or sacrifice of the partners Sacrificing share = Old Share – New Share Annu $\displaystyle 4$/$\displaystyle 10$ - $\displaystyle 1$/$\displaystyle 4$ = $\displaystyle 6$/$\displaystyle 40$ or $\displaystyle 3$/$\displaystyle 20$ Sacrifice Bandhu $\displaystyle 3$/$\displaystyle 10$ - $\displaystyle 1$/$\displaystyle 4$ = $\displaystyle 2$/$\displaystyle 40$ or $\displaystyle 1$/$\displaystyle 20$ Sacrifice Sheelu $\displaystyle 2$/$\displaystyle 10$ - $\displaystyle 1$/$\displaystyle 4$ = ($\displaystyle 2$/$\displaystyle 40$) or ($\displaystyle 1$/$\displaystyle 20$) (Gain) Golu $\displaystyle 1$/$\displaystyle 10$ - $\displaystyle 1$/$\displaystyle 4$ = ($\displaystyle 6$/$\displaystyle 40$) or ($\displaystyle 3$/$\displaystyle 20$) (Gain) Books of Annu, Bandhu, Sheelu and Golu Journal Date Particulars L.F. Dr. Cr. Amount(₹) Amount(₹) $\displaystyle 2025$ Sheelu’s Capital A/c Dr. $\displaystyle 20,000$ April $\displaystyle 1$ Golu’s Capital A/c Dr. $\displaystyle 60,000$ To Annu’s Capital A/c $\displaystyle 60,000$ To Bandhu’s Capital A/c $\displaystyle 20,000$ (Adjustment entry for goodwill due to change in profit sharing ratio)