A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2 : 2 :
Channel: Doubtnut
Date: 2020-04-26

A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 : 1. They decided to share profits in future in the ratio of 4 : 3 : 2 : 1. For this purpose goodwill of the firm was valued at Rs. 1,80,000. There was also a reserve of Rs. 60,000 in the books of the firm.  Find out sacrifice and gaining ratio and pass necessary journal entry assuming that partners do not want to distribute the reserve.