Question

Kartik and Aroha are partners in a firm sharing profits in the ratio of 2: 3 . The balance sheet of the firm as at 31st March, 2018 is given below The partners decided to share profits in equal ratio with effect from lst April, 2018 . The following adjustments were agreed upon. (i) Land and building was valued at ₹ 16,000 and machinery at ₹ 16,400 and were to appear at revalued amounts in the balance sheet.

Answer 1

Answer:

Explanation:

                                   Journal Entries                                                          

  Particulars                              Amount               Amount                        

Land and building A/c       6000

   To revaluation A/c                            6000

revaluation A/c                  2000

   To Machinery A/c                         2000

Revaluation A/c              4000  

    To Kartik A/c                               1600

     To Aroha A/c                              2400

Kartik A/c                       80

  To aroha a/c                                      80

Sacrifice ratio = Old ratio - New ratio

Kartik = 1/10, Aroha = 1/10