Question

Sharing profit & loss in the ratio of 3:3:2. The
he firm on
& building 4,500]
ch 2017 was as follows:
Balance Sheet
(As on 31st March, 2017)
Amount
₹
Assets
lities
dry Creditors
General Reserve
Capital a/cs :
A
24,000
Cash at Bank
36,000 Sundry Debtors
Stock
Machinery
Building
5,00,000
5,60,000
1,-
2,0
2,00,000
1,50,000
1,50,000
B.
С
5,
Partners decided that with effect from 1st April 2017, they would share pr
loss in the ratio of 4: 3:2. It was agreed that:
(i) Stock be valued at * 1,10,000.
(ii) Machinery is to be depreciated by 10%.
(iii) A provision for doubtful debts is to be made on debtors @ 5%.
(iv) Building to be appreciated by 20%.
(v) A liability for 2,500 included in sundry creditors is not likely to ari
They do not, however want to distribute the general reserve and recor
values of assets etc. in the books. You are required to prepare journal entr
accounts of the partners and the revised balance sheet.
Ans: Debit A3,500; Credit B*2,100; Credit C*1,400; Total of B/S.
fit and log in the ratio of 5.4​

Answer 1

Answer:

Sharing profit & loss in the ratio of 3:3:2. The

he firm on

& building 4,500]

ch 2017 was as follows:

Balance Sheet

(As on 31st March, 2017)

Amount

₹

Assets

lities

dry Creditors

General Reserve

Capital a/cs :

A

24,000

Cash at Bank

36,000 Sundry Debtors

Stock

Machinery

Building

5,00,000

5,60,000

1,-

2,0

2,00,000

1,50,000

1,50,000

B.

С

5,

Partners decided that with effect from 1st April 2017, they would share pr

loss in the ratio of 4: 3:2. It was agreed that:

(i) Stock be valued at * 1,10,000.

(ii) Machinery is to be depreciated by 10%.

(iii) A provision for doubtful debts is to be made on debtors @ 5%.

(iv) Building to be appreciated by 20%.

(v) A liability for 2,500 included in sundry creditors is not likely to ari

They do not, however want to distribute the general reserve and recor

values of assets etc. in the books. You are required to prepare journal entr

accounts of the partners and the revised balance sheet.

Ans: Debit A3,500; Credit B*2,100; Credit C*1,400; Total of B/S.

fit and log in the ratio of 5.4