Ashish Aakash and Amit are partners sharing profits and losses equally The Balance Sheet as at 31st ......

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.

By: Aman