CHANGE IN PROFIT SHARING RATIO AMONG THE EXISTING PARTNERS
2.73
16 PARTive
ance
\( A ? 3,82,8 i i \)
\begin{tabular}{|c|c|c|c|c|}
\hline 0 & \( 5,00,000 \) & & Advertisement Suspense & 75,000 \\
\hline\( R \) & \( 3,00,000 \) & \( 10,00,000 \) & & \\
\hline & & \( 14,00,000 \) & & \( 14,00,00 \) \\
\hline
\end{tabular}
On 1st April, 2018 they decided to share future profits in the ratio of \( 4: 6: 5 \). It was agreed that :
(i) Claim for Workmen Compensation has been estimated at \( ? 1,00,000 \).
(ii) A motor cycle valued at \( ? 30,000 \) was unrecorded and is now to be recorded in the books.
(iii) Outstanding expenses were not payable anymore.
(iv) Value of stock be increased to \( ? 2,90,000 \).
(v) A provision for doubtful debts be created (a) \( 5 \% \) on Sundry Debtors.
(vi) Goodwill is valued at \( ? 1,00,000 \).
(vii) The work of reconstitution was assigned to firm's auditors. They were paid \( ? 20,000 \) for this work.
Pass journal entries and prepare Revaluation Account.
[Ans, Gain on Revaluation ?39,000.]
