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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
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