Question

P, Q and R are sharing profits and losses in the ratio of 5:3:2. They decided to share future profits and
losses in the ratio of 2:3:5 with effect from 1st April, 2019. They also decided to record the effect of
following revaluations without affecting the book value of assets and liabilities by passing a single
adjustment entry :
Book Value
Revalued amount
Land & Building
Equipments
Bank Loan
Outstanding Salaries
[Ans. Revaluation Profit * 60,000]
2,00,000
3,00,000
1,00,000
90,000
3,00,000
2.80,000
90,000
1,20,000​

Answer 1

Answer:

P, Q and R are sharing profits and losses in the ratio of 5:3:2. They decided to share future profits and

losses in the ratio of 2:3:5 with effect from 1st April, 2019. They also decided to record the effect of

following revaluations without affecting the book value of assets and liabilities by passing a single

adjustment entry :

Book Value

Revalued amount

Land & Building

Equipments

Bank Loan

Outstanding Salaries

[Ans. Revaluation Profit * 60,000]

2,00,000

3,00,000

1,00,000

90,000

3,00,000

2.80,000

90,000

1,20,000