Radhika, Bani and Chitra were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 1. With effect from 1st April, 2018 they decided to share future profits and losses in the ratio of 3 : 2 : 1. On that date their Balance Sheet showed a debit balance of Rs.  24,000 in Profit and Loss Account and a balance of Rs.  1,44,000 in General Reserve.

It was also agreed that :

(a) The goodwill of the firm be valued at Rs.  1,80,000.

(b) The Land (having book value of Rs.  3,00,000) will be valued at Rs.  4,80,000.

Pass the necessary journal entries for the above changes.

Marks-4, CBSE:2018-19/Main/01/Q-12


error: Content is protected !!