Question

10
ILLUSTRATION 35.
Bhavya and Naman were partners in a firm carrying on a tiffin service in
Hyderabad. Bhavya noticed that a lot of food is left at the end of the day. To avoid
wastage she suggested that it be distributed to the needy; Naman wanted that it should
be mixed with the food being served the next day.
Naman then gave a proposal that if his share in the profit is increased, he will not
mind free distribution of left over food. Bhavya happily agreed. So, they decided to
change their profit sharing ratio to 1:2 with immediate effect. On that date revaluation
of assets and reassessment of liabilities was carried out that resulted into a gain of
*18,000. On that date the goodwill of the firm was valued at $1,20,000.
(a) Pass necessary journal entries for the above in the books of the firm.
(b) State any two values highlighted in the above para.
(C.B.S.E. 2017 Comptt. Outside Delhi)
SOLUTION :
Books of the Bhavya & Naman​

Answer 1

Answer:

Bhavya and Naman were partners in a firm carrying on a tiffin service in Hyderabad. Bhavya noticed that a lot of food is left at the end of the day. To avoid wastage she suggested that it should be distributed to the needy, Naman wanted that it should be mixed with the food being served the next day.