A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2 . Their Balance Sheet as at 31st March, 2017 stood as follows: They decided to share profits equally w.e.f 1st April, 2017. They also agreed that: (i) Value of Land and Building be decreased by 5%. (ii) Value of Machinery be increased. by 5%. (iii) A Provision for Doubtful Debts be created @ 5% on Sundry Debtors. (iv) A Motor Cycle valued at ₹ 20,000 was unrecorded and is now to be recorded in the books. (v) Out of Sundry Creditors, ₹ 10,000 is not payable. (vi) Goodwill is to be valued at 2 years purchase of last 3 years profits. Profits being for 2016-17 – ₹ 50,000 (Loss); 2015-16 – ₹2,50,000 and 2014-15 – ₹ 2,50,000. (vii) C was to carry out the work for reconstituting the firm at a remuneration ( including expenses) of ₹ 5,000. Expenses came to ₹ 3,000. Pass journal entries and prepare Revaluation Account.

A, B and C are partners sharing profits and losses in the ratio of 5 :

1.	A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2 . Their Balance Sheet as at 31st March, 2017 stood as follows: They decided to share profits equally w.e.f 1st April, 2017. They also agreed that: (i) Value of Land and Building be decreased by 5%. (ii) Value of Machinery be increased. by 5%. (iii) A Provision for Doubtful Debts be created @ 5% on Sundry Debtors. (iv) A Motor Cycle valued at ₹ 20,000 was unrecorded and is now to be recorded in the books. (v) Out of Sundry Creditors, ₹ 10,000 is not payable. (vi) Goodwill is to be valued at 2 years purchase of last 3 years profits. Profits being for 2016-17 – ₹ 50,000 (Loss); 2015-16 – ₹2,50,000 and 2014-15 – ₹ 2,50,000. (vii) C was to carry out the work for reconstituting the firm at a remuneration ( including expenses) of ₹ 5,000. Expenses came to ₹ 3,000. Pass journal entries and prepare Revaluation Account.
Answer» v) Out of Sundry Creditors, ₹ 10,000 is not payable.(vi) GOODWILL is to be VALUED at 2 years purchase of LAST 3 years profits. Profits being for2016-17 – ₹ 50,000 (Loss);2015-16 – ₹2,50,000 and2014-15 – ₹ 2,50,000.(vii) C was to CARRY out the work for reconstituting theHope this helps ❤️PLEASE MARK AS BRAINLIEST ❤️❤️

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