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X and Y are in partnership sharing profits in the ratio of 2 : 3 . With effect from 1st April, 2018, they agreed to share profits in the ratio f 1 : 2 . For this purpose, goodwill of the firm is to be valued at two years purchase of the average profit of last three years , which were ₹ 1, 50,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. The reserves appear in the books at ₹ 1,10,000. Partners decide to continue showing Reserves in the books . You are required to give effect to the change by passing a single journal entry. |
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Answer» ,00,000 respectively. The reserves appear in the BOOKS at ₹ 1,10,000. PARTNERS decide to continue showing Reserves in the books . You are required to give effect to the change by PASSING a single JOURNAL entry.HOPE THIS HELPS ❤️PLEASEMARK AS BRAINLIEST ❤️❤️ |
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