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Question 11 Chapter 4 – Class 12 Part 1 Unimax
11. The following is the Balance Sheet of P, Q, R and S as at 31st December, 2020.
| Liabilities | Amount | Assets | Amount | |
| Creditors | 80,000 | Bills Receivable | 20,000 | |
| Reserves | 1,50,000 | Building | 6,50,000 | |
| Profit & Loss A/c (Profits) | 90,000 | Plant & Machinery | 500000 | |
| Capitals : | Stock | 3,00,000 | ||
| P | 2,00,000 | Debtors | 2,40,000 | |
| Q | 3,00,000 | Cash at Bank | 10,000 | |
| R | 5,00,000 | |||
| S | 4,00,000 | 14,00,000 | ||
| 17,20,000 | 17,20,000 |
On 1st January, 2021 the assets and liabilities were revalued as under :
| Building | Rs. 8,00,000 |
| Plant and Machinery | Rs. 3,20,000 |
| Stock | Rs. 2,60,000 |
| Creditors | Rs. 84,000 |
A provision of 5% was required on debtors. Goodwill of the firm is valued at Rs. 1,70,000. Partners agreed that from 1.1.2021 they will share profits in ratio of 4 : 3 : 2 : 1 instead of their former ratio of 5 : 4 : 2 : 1. They don’t want to record revised values of assets and liabilities in the books. They also don’t want to distribute the reserve and P & L A/cs balance.
Pass a single Journal entry to give effect to above.
The solution of Question 11 Chapter 4 -Class 12 Part 1 Unimax:
Journal
Working Note :
Calculation of Sacrifices/ Gains to Partners
Credits to be given to Partners
P : (Rs. 324000 X 1/60) = Rs. 5400
Q : (Rs. 324000 X 2/60) = Rs. 10800
And Capital accounts of R & S should be debited with following Amounts
R : (Rs. 324000 X 2/60) = Rs. 10800
S : (Rs. 324000 X 1/60) = Rs. 5400
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