Sonu, Sumit and Sahil are partners of sharing profits and losses in th

1.	Sonu, Sumit and Sahil are partners of sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st December, 2014 was as follows : LiabilitiesAmountAssetsAmount(Rs)(Rs)Sundry Creditors50,000Cash at Bank25,000Capital A/c's:Sundry Creditors50,000 Sonu2,00,000Stock75,000 Sumit80,000Machinery1,00,000 Sahil70,000Building1,50,0004,00,0004,00,000 Partners decided that with effect from 1st January, 2015, they would share profits and losses in the ratio 3 : 2 : 1. It was agreed that : (a) Stock be valued at Rs 70,000. (b) Machinery to be depreciated by 20% (c) A provision for doubtful debts be made on debtors 5%. (d) Building to be appreciated by 15%. (e) A liability for Rs 9,500 included in Sundry Creditors is not likely to arise. (f) Goodwill of the firm is to be valued at Rs 90,000. Partners agreed that the revised values of assets and liabilities are not to be recorded in the books. You are required to record the change by passing a single Journal entry with necessary working note. Also prepare the revised Balance Sheet.
Answer» Sonu, Sumit and Sahil are partners of sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st December, 2014 was as follows : $\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Sundry Creditors & 50, 000 & Cash at Bank & 25, 000 Capital A/c's : & Sundry Creditors & 50, 000 Sonu & 2, 00, 000 & Stock & 75, 000 Sumit & 80, 000 & Machinery & 1, 00, 000 Sahil & 70, 000 & Building & 1, 50, 000 4, 00, 000 & 4, 00, 000 \end{matrix}$ Partners decided that with effect from 1st January, 2015, they would share profits and losses in the ratio 3 : 2 : 1. It was agreed that : (a) Stock be valued at Rs 70,000. (b) Machinery to be depreciated by 20 $%$ (c) A provision for doubtful debts be made on debtors 5 $%$ . (d) Building to be appreciated by 15 $%$ . (e) A liability for Rs 9,500 included in Sundry Creditors is not likely to arise. (f) Goodwill of the firm is to be valued at Rs 90,000. Partners agreed that the revised values of assets and liabilities are not to be recorded in the books. You are required to record the change by passing a single Journal entry with necessary working note. Also prepare the revised Balance Sheet.

Sonu, Sumit and Sahil are partners of sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st December, 2014 was as follows : LiabilitiesAmountAssetsAmount(Rs)(Rs)Sundry Creditors50,000Cash at Bank25,000Capital A/c's:Sundry Creditors50,000 Sonu2,00,000Stock75,000 Sumit80,000Machinery1,00,000 Sahil70,000Building1,50,0004,00,0004,00,000 Partners decided that with effect from 1st January, 2015, they would share profits and losses in the ratio 3 : 2 : 1. It was agreed that : (a) Stock be valued at Rs 70,000. (b) Machinery to be depreciated by 20% (c) A provision for doubtful debts be made on debtors 5%. (d) Building to be appreciated by 15%. (e) A liability for Rs 9,500 included in Sundry Creditors is not likely to arise. (f) Goodwill of the firm is to be valued at Rs 90,000. Partners agreed that the revised values of assets and liabilities are not to be recorded in the books. You are required to record the change by passing a single Journal entry with necessary working note. Also prepare the revised Balance Sheet.

Answer»

Sonu, Sumit and Sahil are partners of sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st December, 2014 was as follows :

$\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Sundry Creditors & 50, 000 & Cash at Bank & 25, 000 Capital A/c's : & Sundry Creditors & 50, 000 Sonu & 2, 00, 000 & Stock & 75, 000 Sumit & 80, 000 & Machinery & 1, 00, 000 Sahil & 70, 000 & Building & 1, 50, 000 4, 00, 000 & 4, 00, 000 \end{matrix}$

Partners decided that with effect from 1st January, 2015, they would share profits and losses in the ratio 3 : 2 : 1. It was agreed that :

(a) Stock be valued at Rs 70,000.

(b) Machinery to be depreciated by 20 $%$

(d) Building to be appreciated by 15 $%$ .

(e) A liability for Rs 9,500 included in Sundry Creditors is not likely to arise.

(f) Goodwill of the firm is to be valued at Rs 90,000.

Partners agreed that the revised values of assets and liabilities are not to be recorded in the books. You are required to record the change by passing a single Journal entry with necessary working note. Also prepare the revised Balance Sheet.

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