Q. X, Y and Z are partners in a firm sharing profits and losses as 5 : 4 : 3 . Their Balance Sheet as at 31st March, 2018 was :
|
|
|
Liabilities
|
₹
|
Assets
|
₹
|
Sundry Creditors |
40,000 |
Cash at Bank |
40,000 |
Outstanding Expenses |
15,000 |
Sundry Debtors |
2,10,000 |
General Reserve |
75,000 |
Stock |
3,00,000 |
Capital A/cs: |
|
Furniture |
60,000 |
X |
4,00,000 |
|
Plant and Machinery |
4,20,000 |
Y
|
3,00,000
|
|
|
|
Z
|
2,00,000
|
9,00,000
|
|
|
|
10,30,000
|
|
10,30,000
|
|
|
|
|
From 1st April, 2018, they agree to alter their profit-sharing ratio as 4 : 3 : 2 .It is also decided that :
(a) Furniture be taken at 80% of its value .
(b) Stock be appreciated by 20%.
(c) Plant and Machinery be valued at ₹ 4,00,000.
(d) Outstanding Expenses be increased by ₹ 13,000.
Partners agreed that altered values are not to be recorded in the books and they also do not want to distribute the General Reserve .
You are required to pass a single journal entry to give effect to the above . Also, prepare Balance Sheet of the new firm.