Hari, Kunal and Uma are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2.

From 1st April 2018 they decided to share future profits and losses in the ratio of 2 : 5 : 3.

Their Balance sheet showed a balance of ₹ 75,000 in the Profit and Loss Account and a balance of ₹ 15,000 in investment Fluctuation Fund.

For this purpose, it was agreed that:

i) Goodwill of the firm was valued at ₹ 3,00,000.

ii) That investment (having a book value of ₹ 50,000) was valued at ₹ 35,000.

iii) That stock having a book value of ₹ 50,000 be depreciated by 10%

Pass the necessary Journal entries for the above in the books of the firm.

Anurag Pathak Changed status to publish April 14, 2024
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