1.

X, Y and Z are partners sharing profits ands losses in the ratio of 6 : 3 : 1 . They decide to take W into partnership with effect from 1st April, 2018 . The new profit-sharing ratio between X, Y , Z and W will 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 a single adjustment entry: Book Value(₹ ) Revised Value(₹ ) 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.

Answer» X, Y and Z are partners sharing profits ands losses in the ratio of 6 : 3 : 1 . They decide to take W into partnership with effect from 1st April, 2018 . The new profit-sharing ratio between X, Y , Z and W will 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 a single adjustment entry:





























Book Value(₹ ) Revised Value(₹ )
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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