A, B and C are sharing profits and losses in the ratio of 2 : 2 : 1. They decided to share profit w.e.f. 1st April, 2019 in the ratio of 5 : 3 : 2. They also decided not to change the values of assets and liabilities in the books of account. The book values and revised values of assets and liabilities as on the date of change were as follows: 

 ParticularsBook values (Rs.) Revised values (Rs.)
Sundry Creditors90,00075,000
Outstanding Expenses15,00025,000

Pass an adjustment entry.


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