X, Y and Z are partners in a firm sharing profits and losses as 5 : 4 : 3. Their Balance Sheet as at 31st March, 2019 was:
|
|
Liabilities |
Amount
(₹) |
Assets |
Amount
(₹) |
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, 2019, 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.