Rajesh and Mahesh are partners in a firm sharing profit in the ratio of 3 : 2. Their Balance Sheet as at 31st March 2023 was as follows:
Rajesh and Mahesh are partners in a firm sharing profit in the ratio of 3 : 2. Their Balance Sheet as at 31st March 2023 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Rajesh’s Capital A/c
Mahesh’s Capital A/c Creditors |
54,000 36,000 36,000 |
Cash
Machinery Building |
18,000 36,000 72,000 |
| 1,26,000 | 1,26,000 |
Goodwill of the firm is valued at ₹ 36,000 and the building at ₹ 90,000 on 31st March 2023. The partners decide to share profits equally with effect from 1st April 2023.
Pass the necessary accounting entries without affecting the existing figure of the building.
Anurag Pathak Changed status to publish May 2, 2023
