Question

Nidhi and Vidhi are partners sharing profits and losses in the ratio of 3 : 1. They decided to share future profits and losses in 2 : 3. For that purpose goodwill is valued at ₹ 75,000. Pass the necessary adjustment entry.

[0.88 marks]

• A. $\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F.}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ & & & & & \\ & \text{Nidhi’s Capital A/c}& \text{Dr.}& & \text{26,250}& \\ & \text{To Vidhi’s Capital A/c}& & & & \text{26,250}\end{array}$
• B.
  $\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F.}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ & & & & & \\ & \text{Vidhi’s Capital A/c}& \text{Dr.}& & \text{26,250}& \\ & \text{To Nidhi’s Capital A/c}& & & & \text{26,250}\end{array}$
• C. $\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F.}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ & & & & & \\ & \text{Nidhi’s Capital A/c}& \text{Dr.}& & \text{26,250}& \\ & \text{Vidhi’s Capital A/c}& \text{Dr.}& & \text{26,250}& \\ & \text{To Profit and Loss A/c}& & & & \text{52,500}\end{array}$
• D. $\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F.}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ & & & & & \\ & \text{Profit and Loss A/c}& \text{Dr.}& & \text{52,500}& \\ & \text{To Nidhi's Capital A/c}& & & & \text{26,250}\\ & \text{To Vidhi's Capital A/c}& & & & \text{26,250}\end{array}$

Answer 1

The correct option is B

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F.}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ & & & & & \\ & \text{Vidhi’s Capital A/c}& \text{Dr.}& & \text{26,250}& \\ & \text{To Nidhi’s Capital A/c}& & & & \text{26,250}\end{array}$

Particulars	Nidhi	Vidhi
Before Reconstitution (3 : 1) I After Reconstitution (2 : 3) II	56,250 30,000	18,750 45,000
Net Effect (I - II)	26,250 (cr.)	26,250 (dr.)