Question

Deep, Ishwar, and Mukesh were partners in a firm sharing profits and losses in the ratio of 5:3:2. From 1st April,2020 they decided to share profits equally. The revaluation of assets and re-assessment of liabilities resulted in a profit of₹10000. The goodwill of the firm on its reconstitution was valued at₹120000. The firm had a balance of₹30000 in general reserve.​ Showing your working clearly,pass journal entries on the reconstitution of the firm.​

Answer 1

Answer:

sacrifice or gain

old ratio - new ratio

Deep. == 5/10-1/3=5/30. (S)

Ishwar = 3/10- 1/3= 1/30( G)

Mukesh == 2/10-1/3=4/30(G)

profit on revaluation ==10000

Goodwill. =. 120000

General reserve = 30000

== 160000

Ishwar capital a/c. dr 5333

Mukesh capital a/ c. dr 21333

To. deep capital a/ c. 26666