Dishi, Aanya and Naisha were partners in the firm sharing profits and losses equally.On 1st April, 2020, they mutually decided to give more profit to Dishi as she was comparatively contributing more time to the business than other two partners, so they decided to give half the share to Dishi and decided to share the remaining profit equally. Following balances appear in the Balance Sheet:- General reserve 1,00,000, Profit & Loss A/c (Dr. balance) 60,000. Revaluation loss 30,000 and Goodwill is to be valued at 10 % more than twice the profit of last year which was 50,000. Pass the single adjusting entry for the above.
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Dishi ,Aanya and Naisha were partners in the firm sharing profits and losses equally On 1 april,2015.
they mutually decided to give more profit to Dishi as she was comparatively Contributing more time
to the business than other two partners, so they decided to give half the share to Dishi and decided
to share the remaining profit equally. Following balances appear In the Balance Sheet;
General reserve Rs 1,00,000 Profit & Loss A/c (Dr. balance) Rs 60,000
Revaluation loss Rs 30,000 and Goodwill is to be valued at 10% more than twice the profit of last year which was Rs 50,000
The partners do not want to show the effect of above changes in the books. Pass the single adjusting entry for the same.
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