Bhavya and Sakshi a
sharing profits and losses in the ratio of 3:2. On 31st March,
and Sakshi are partners in a firm
18 their Balance Sheet was as under:
BALANCE SHEET OF BHAVYA AND SAKSHI as at 31st March, 2018
Assets
Creditors
cerea Reserve
nement Fluchation Fund
Seas Capital
13.800
23.400
20,000
50,000
40,000
1,47,200
Furniture
Land and Building
investments
Trade Receivables
Cash in Hand
16000
56.000
30.000
18.500
26,700
1.47 200
The partners have decided to change their proht sharing ratio to 1:1 with immediate effect. For the
purpose, they decided that:
investments to be valued at 20,000.
Goodwill of the firm be valued at 24,000.
General Reserve not to be distributed between the partners.
You are required to pass necessary Journal entries in the books of the firm. Show workings.
(CBSE Sample Paper 2018)
Answers
Answer:
Explanation:
Journal
Investment fluctuation fund A/c 20000
To investment 10000
To Bhavya's capital A/c 6000
To Sakshi's capital A/c 4000
Sakshi's capital A/c 2400
To Bhavya's Capital A/c 2400
Sakshi's capital A/c 2340
To Bhavya's capital A/c 2340
Sacrificing ratio = old ratio - New ratio
Bhavya's = 3/5 - 1/2 = 1/10 sacrifice
Sakshi's = 2/5 - 1/2 = 1/10 Gain