Accounting Treatment of Goodwill | Change in Profit Sharing Ratio | Partnership Accounts Class 12

 Kabir, Divya and Mansha were partners in a firm sharing profits

and losses in the ratio of 5:4:1. With effect from 1st April 2025, they

decided to share the future profits and losses in the ratio of 4:1:5.

For this purpose, the goodwill of the firm was valued at ₹ 3,00,000.

The necessary journal entry for the treatment of goodwill because of

change in profit sharing ratio will be :

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