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A, B and C are partners sharing profits and losses in the ratio of 3:3:2. Their Balance Sheet as at 31 March, 2019 has book values as Stock Rs. 1,20,000, Machinery Rs. 1,59,000, Building Rs. 2,00,000, Creditors Rs. 24,000, General Reserve Rs. 36,000, Debtors Rs. 44,000. Partners decided that with effect from 1 April 2019, they would share profits and losses in the ratio of 4:3:2. It was agreed that stock be revalued Rs. 1,07,800, machinery reduced by Rs. 15,900, building increased by Rs. 42,500. Partners agreed that revised values of assets and liabilities are not be recorded in the books and they also do not want to distribute the general reserve. Pass the necessary single entry to give effect to the above. Show your working notes clearly. |
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Answer» Answer: 55,00,432 is the VALUE |
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