Treatment of Goodwill | Change in Profit Sharing Ratio | Class 12th | CA Foundation | Accounts

This video explains the change in the profit-sharing ratio in detail. It explains why there is a need for this calculation, which is the basic question. It explains how to make and pass the journal entry for the same and describes this in detail in a step-by-step manner. This is further explained by illustration through an example, making it clear to everyone.

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Video Chapters 📖👇

00:00 Intro 🎵

00:05 Accounting treatment of Goodwill in case of change in profit sharing ratio 📊

00:23 Need to calculate Goodwill in case of change in profit sharing ratio ❓

01:27 Existing partner gains and loses in change of profit sharing ratio 😕

02:09 Steps in treatment of Goodwill - Calculation of Goodwill of the firm 💰

02:56 Calculation of sacrifice ratio and gain ratio 🔄

04:04 Calculation of amount payable to sacrificing and receivable by gaining partner💸

04:58 Journal entry for change in profit sharing ratio 📔

06:00 Illustration - Calculation of gaining and sacrificing partner📝

10:01 Treatment of Goodwill in case of change in profit sharing ratio explained ✅

10:24 Outro 🎵
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