Solution 9|change in profit-sharing ratio among the existing partners|TS Grewal edition 2026

Solution 9|change in profit-sharing ratio among the existing partners|TS Grewal edition 2026 Q9. A and B are partners in a firm sharing profits in the ratio of 2 : 1. They decided that with effect from 1st April, 2025, they would share profits in the ratio of 3 : 2. But this decision was taken after the profit for the year ended 31st March, 2026 of ₹90,000 was distributed in the old profit-sharing ratio. Firm’s goodwill was valued on the basis of aggregate of two years’ profits preceding the date decision became effective. Profits for the years ended 31st March, 2024 and 2025 were ₹60,000 and ₹75,000 respectively. Capital Accounts of the partners as at 31st March, 2026 were ₹1,50,000 for A and ₹90,000 for B. Pass necessary Journal entries and prepare Partners’ Capital Accounts.