|Sundry Creditors||75,000||Cash in Hand||24,000|
|General Reserve||90,000||Cash at Bank||1,40,000|
|Capital A/c :||Sundry Debtors||80,000|
|Ashish – 3,00,000||Stock||1,40,000|
|Aakash – 3,00,000||Land and Building||4,00,000|
|Amit – 2,75,000||8,75,000||Machinery||2,50,000|
The partners decided to share profits in the ratio of 2 : 2 : 1 w.e.f. 1st April, 2019. They also decided that:
(i) Value of stock to be reduced to Rs. 1,25,000.
(ii) Value of machinery to be decreased by 10%.
(iii) Land and Building to be appreciated by Rs. 62,000.
(iv) Provision for Doubtful Debts to be made @ 5% on Sundry Debtors.
(v) Aakash was to carry out reconstitution of the firm at a remuneration of Rs. 10,000.
Pass necessary Journal entries to give effect to the above