25 :- Hari, Kunal and Uma are partners in a firm sharing profits and losses in the ratio of 5 ; 3 : 2. From 1st April, 2018 they decided to share future profits and losses in the ratio of 2 : 5 : 3. Their Balance sheet showed a balance of Rs 75,000 in the Profit and Loss Account and a balance of Rs 15,000 in investment Fluctuation Fund. For this purpose, it was agreed that:
- Goodwill of the firm was valued at Rs 3,00,000.
- That investment (having a book value of Rs 50,000) was valued at Rs 35,000.
- That stock having a book value of Rs 50,000 be depreciated by 10%
Pass the necessary Journal entries for the above in the books of the firm.
26 :- 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, 2025 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 asset and liabilities as on the date of change were as follows:
Pass an adjustment entry.
27 :- Ajeet and Vijeet and Sujeet are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share profits and losses in the ratio of 2 : 5 : 3 with effect from 1st Apirl, 2025. Land (having book value of Rs 1,00,000) was found undervalued by Rs 2,50,000 and stock (having book value of Rs 4,00,000) was found overvalued by Rs 3,00,000.
Pass the necessary adjusting entry without affecting the existing book value.
28 :- Pinky and Rocky are partners in a firm sharing profit in the ratio of 3 : 2. Their Balance Sheet as at 31st March 2025 was as follows:
Goodwill of the firm is valued at Rs 36,000 and the building at Rs 90,000 on 31st March, 2024. The partners decide to share profits equally with effect from 1st April, 2024.
Pass the necessary accounting entries without affecting the existing figure of building.
Question 1 to 4 (Sacrificing and Gaining Share)
Question 5 (Calculation of Old Profit – Sharing Ratio on the basis of Sacrificing and Gaining share)
Question 6 to 10 (Accounting of goodwill)
Question 11 (Calculation of New Profit – sharing ratio on the basis of Adjustment of goodwill)
Question 12 to 16 (Accounting of Reserves, Accumulated Profits and Losses)
Question 17 to 20 (Accounting of Reserves, Accumulated Profits and Losses)
Question 21 to 24 (Accounting of Reserves, Accumulated Profits and Losses)
Question 25 to 28 (Revaluation of Assets and Reassessment of Liabilities)
Question 29 to 30 (Preparation of Balance Sheet)
Question 31 to 32 (Adjustment of capital)