BALANCE SHEET OF BHAVYA AND SAKSHI
as at 31st March, 2018
|General Reserve||23,400||Land and Building||56,000|
|Investment Fluctuation Fund||20,000||Investments||30,000|
|Bhavya’s Capital||50,000||Trade Receivables||18,500|
|Sakshi’s Capital||40,000||Cash in Hand||26,700|
The partners have decided to change their profit-sharing ratio to 1: 1 with immediate effect. For the purpose, they decided that:
(i) Investments to be valued at Rs. 20,000.
(ii) Goodwill of the firm be valued at Rs. 24,000.
(iii) General Reserve not to be distributed between the partners.
You are required to pass necessary Journal entries in the books of the firm. Show workings.