X, Y and Z are partners sharing profits and losses in the ratio of 7 : 5 : 4. Their balance sheet as at 31st March 2021 stood as follows:
X, Y and Z are partners sharing profits and losses in the ratio of 7 : 5 : 4. Their balance sheet as at 31st March 2021 stood as follows:
|
Liabilities
|
₹
|
Assets
|
₹
|
|
Capital Accounts:
X Y Z |
2,00,000
1,50,000 1,20,000 |
Sundry Assets
|
6,00,000
|
|
General Reserve
|
75,000
|
||
|
Profit & Loss A/c (profits)
|
15,000
|
||
|
Creditors
|
40,000
|
||
|
6,00,000
|
6,00,000
|
Partners decided that with effect from 1st April 2021, they will share profits and losses in the ratio of 3 : 2 : 1. For this purpose goodwill of the firm was valued at ₹ 1,50,000. The partners do not want to distribute the general reserve and profits.
Pass a single Journal entry to record the change and prepare a revised balance sheet.
[Ans. Debit X by ₹ 15,000 and Y by ₹ 5,000; Credit Z by ₹ 20,000. Total of Balance Sheet ₹ 6,00,000.
Anurag Pathak Answered question August 1, 2024
