Q22.Ashish, Aakash and Amit are partners sharing profits and losses equally. The Balance Sheet as at 31st March, 2019 was as follows:

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 1,25,000.

ii

Value of machinery to be decreased by 10%.

iii

Land and Building to be appreciated by 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 10,000. Pass necessary Journal entries to give effect to the above.