X Y and Z are partners in a firm sharing profits and losses as 5 4 3 Their Balance Sheet as at 31st ...........

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X, Y and Z are partners in a firm sharing profits and losses as 5 : 4 : 3. Their Balance Sheet as at 31st March, 2019 was:

Liabilities	Amount	Assets	Amount
Sundry Creditors	40,000	Cash at Bank	40,000
Outstanding Expenses	15,000	Sundry Debtors	2,10,000
General Reserve	75,000	Stock	3,00,000
Capital A/cs:		Furniture	60,000
X 4,00,000		Plant and Machinery	4,20,000
Y 3,00,000
Z 2,00,000	9,00,000
	10,30,000		10,30,000

From 1st April, 2019, they agree to alter their profit-sharing ratio as 4 : 3 : 2. It is also decided that:

Furniture be taken at 80% of its value.

Stock be appreciated by 20%.

Plant and Machinery be valued at 4,00,000.

Outstanding Expenses be increased by 13,000.

Partners agreed that altered values are not to be recorded in the books and they also do not want to distribute the General Reserve. You are required to pass a single Journal entry to give effect to the above. Also, prepare Balance Sheet of the new firm.

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