Q 31 please give answer today please
Q. 31. X, Y and Z are partners sharing profits and losses in the ratio of 7 : 5 : 4. Their balance sheet as at 31st March 2016 stood as follows :
Partners decided that with effect from 1st April 2016, they will share profits and losses in the ratio of 3 : 2 : 1. For this purpose goodwill of the firm was valued at Rs 1,50,000. The partners do not want to distribute the general reserve and profits.
Pass a single journal entry to record the change and prepare a revised balance sheets.
[Ans. Debit X by Rs. 15,000, and Y by Rs. 5,000 ; Credit Z by Rs. 20,000. Total of Balance Sheet Rs. 6,00,000.]
Dear Student,
Working Notes:
Note: While drawing Balance Sheet all assets and liabilities would remain same except capitals. Rs 15,000 and Rs 5,000 subtracted from X and Y's capital and Rs 20,000 would be added to Z's capital A/c.
Regards
| Journal | ||||||
| Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
||
| X’s Capital A/c | Dr. | 15,000 | ||||
| Y’s Capital A/c | Dr. | 5,000 | ||||
| To Z’s Capital A/c | 20,000 | |||||
| (Adjustment entry made due to change in ratio) | ||||||
Working Notes:
Note: While drawing Balance Sheet all assets and liabilities would remain same except capitals. Rs 15,000 and Rs 5,000 subtracted from X and Y's capital and Rs 20,000 would be added to Z's capital A/c.
Regards
