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Why the existing goodwill has reversed by revised profit sharing ratio.while net profit has reversed by old profit sharing ratio
Answers (4)
Ram Shete
Yes that's my doubt also... if profit sharing ratio was revised from 1st April 2014 the profit should have been distributed in this ratio so it should also be reversed in the new ratio
It was initially credited in old ratio. So to open the P&L adjustment, it was reversed in old ratio. The revised profit is distributed in new ratio.
CA Suraj Lakhotia Admin
It was initially credited in old ratio. So to open the P&L adjustment, it was reversed in old ratio. The revised profit is distributed in new ratio.
Sir,Goodwill showing in the balance sheet whether credited into partners capital by old profit sharing ratio or revised profit sharing ratio.because while revaluing and to make disappear in the balance sheet we debited partners capital ( for writing back old goodwill)in New profit sharing ratio.but the qn says the new sharing ratio was TO BE REVISED.yet not revised then why we are debiting partner capital account in new profit sharing ratio
Thread Starter
S.P. RAYANSir,Goodwill showing in the balance sheet whether credited into partners capital by old profit sharing ratio or revised profit sharing ratio.because while revaluing and to make disappear in the balance sheet we debited partners capital ( for writing back old goodwill)in New profit sharing ratio.but the qn says the new sharing ratio was TO BE REVISED.yet not revised then why we are debiting partner capital account in new profit sharing ratio
To be revised means you have to give effect to the revision.