Hari, Kunal and Uma are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2018 they decided to share future profits and losses in the ratio of 2 : 5 : 3. Their Balance Sheet showed a balance of Rs.  75,000 in the Profit and Loss Account and a balance of Rs.  15,000 in Investment Fluctuation Fund. For this purpose, it was agreed that:

(i) Goodwill of the firm was valued at Rs.  3,00,000.

(ii) That investments (having a book value of Rs.  50,000) were valued at Rs.  35,000.

(iii) That stock having a book value of Rs.  50,000 be depreciated by 10%.

Pass the necessary journal entries for the above in the books of the firm.

Marks-4, CBSE:2018-19/Main/02/Q-11

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