Q22. Pls pass the entries

Dear Student 


Working Notes:
1. Calculation of Sacrifice or Gain
Old Ratio between A, B and C= 2:2:1
New Ratio between A, B and C= 5: 3:2
Sacrificing or Gaining Ratio = Old Ratio - New Ratio
A's share = 2/5 - 5/10 = -1/10 ( gain) 
B's share= 2/5 -3/10 = 1/10 ( Sacrifice)
C's share= 1/5- 2/10 = 0

Adjustment Entry
A's Capital A/c = 30,000x1/10 =  3,000 (Dr.)
B's Capital A/c = 30,000 x1/10 =  3,000 (Cr.)

2. Calculation of Profit or Loss on Revaluation
Add

• Increase in value of machinery = 50000
• Decrease in value of Creditors = 15000

Less

• Decrease in value of computer = (25000)
• Increase in value of outstanding expenses= (30000)

Profit on Revaluation = 30000


Regards