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InterviewSolution
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X, Y and Z are partners sharing profits and losses in the ratio of 6 : 3 : 1. They admitted W into partnership with effect from 1st April, 2019. New profit-sharing ratio between X, Y, Z and W was agreed to be 3 : 3 : 3 : 1. They also decide to record the effect of the following revaluations without affecting the book values of the assets and liabilities by passing an adjustment entry: Book Values (₹) Revised Values (₹) Plant and Machinery 3,50,000 3,40,000 Land and Building 5,00,000 5,50,000 Trade Creditors 1,00,000 90,000 Outstanding Expenses 85,000 1,00,000 Pass necessary adjustment entry. |
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Answer» X, Y and Z are partners sharing profits and losses in the ratio of 6 : 3 : 1. They admitted W into partnership with effect from 1st April, 2019. New profit-sharing ratio between X, Y, Z and W was agreed to be 3 : 3 : 3 : 1. They also decide to record the effect of the following revaluations without affecting the book values of the assets and liabilities by passing an adjustment entry:
Pass necessary adjustment entry. |
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