Hari, Kunal and Uma are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2018 they decided to share future profits and losses in the ratio of 2 : 5 : 3. Their Balance Sheet showed a balance of Rs. 75,000 in the Profit and Loss Account and a balance of Rs. 15,000 in Investment Fluctuation Fund. For this purpose, it was agreed that:
(i) Goodwill of the firm was valued at Rs. 3,00,000.
(ii) That investments (having a book value of Rs. 50,000) were valued at Rs. 35,000.
(iii) That stock having a book value of Rs. 50,000 be depreciated by 10%.
Pass the necessary journal entries for the above in the books of the firm.
Marks-4, CBSE:2018-19/Main/02/Q-11
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