Business, 23.06.2021 14:00 mncampbell01

25. (Journal/ Capital a/c/ Balance sheet) X and Y are partners sharing profits in 4:3 ratio. The balance sheet as on 31st March 2018 was as follows:
Reserves 21,000Fixed assets75,000
Sundry creditors 14,000Sundry Debtors 60,000
Capital A/c Cash in hand 10,000
X1,20,000 Stock 70,000
Y60,0001,80,000
2,15,000 2,15,000
They decided that with effect from 1st April 2018, they will share profits and losses in the ratio of 2:1. For this purpose, they decided that:

Fixed assets to be depreciated by 10%.
A provision of 6% is made on debtors for doubtful debts.
Stock is valued at Rs.95,000.
An amount of Rs.1,850 included in creditors is not likely to be claimed.
Partners decide to record the revised values in the books. However, they do not want to disturb the reserve. You are required to pass the journal entries, prepare the capital accounts of partners and the revised balance sheet. Please explain with working note

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25. (Journal/ Capital a/c/ Balance sheet) X and Y are partners sharing profits in 4:3 ratio. The bal...

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