Ashish, Aakash, and Amit are partners sharing profits and losses equally. The Balance Sheet as at 31st March 2023 was as follows:
Ashish, Aakash, and Amit are partners sharing profits and losses equally. The Balance Sheet as at 31st March 2023 was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Sundry Creditors
General Reserve |
1,35,000 90,000
|
Cash in Hand
Cash at Bank Sundry Debtors Stock |
84,000
1,40,000 80,000 1,40,000 |
|
| Capital A/cs:
Ashish Aakash Amit |
3,00,000 3,00,000 2,75,000 |
8,75,000 |
Land and Building Machinery Advertisement Suspense |
4,00,000 2,50,000 6,000 |
| 11,00,000 | 11,00,000 |
The partners decided to share profits in the ratio of 2 : 2 : 1 w.e.f. 1st April, 2023. They also decided that:
i) Value of stock to be reduced to ₹ 1,25,000.
ii) Value of Machinery to be decreased by 10%
iii) Land and Building to be appreciated by ₹ 62,000.
iii) Provision for Doubtful Debts to be made @ 5% on Sundry Debtors.
iv) Aakash was to carry out reconstitution of the firm at a remuneration of ₹ 10,000.
Pass necessary Journal entries to give effect to the above.
Anurag Pathak Changed status to publish April 30, 2023
Solution:-
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Anurag Pathak Changed status to publish April 30, 2023
