U V and W are partners sharing profits in the ration of 2:3:5. They also decide to record the effect of the following revaluations and reassessments without affecting the book values of assets and liabilities by passing a single adjustment entry: Book Value (Rs) Revised Value (Rs) Land and Building 3,00,000 3,50,000 Furniture 1,50,000 1,00,000 Sundry Creditors 60,000 20,000 Outstanding Salaries 10,000 15,000 The single adjustment entry will (a) Dr. W and Cr. U by 10,500 (b) Dr. U and Cr. W by Rs. 10,500 (c) Dr. V and Cr. U by Rs. 10,500 (d) Dr. W and Cr. V by Rs. 10,500
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
U V and W are partners sharing profits in the ration of 2:3:5. They also decide to record the
effect of the following revaluations and reassessments without affecting the book values of assets
and liabilities by passing a single
Book Value (Rs) Revised Value (Rs)
Land and Building 3,00,000 3,50,000
Furniture 1,50,000 1,00,000
Sundry Creditors 60,000 20,000
Outstanding Salaries 10,000 15,000
The single adjustment entry will
(a) Dr. W and Cr. U by 10,500
(b) Dr. U and Cr. W by Rs. 10,500
(c) Dr. V and Cr. U by Rs. 10,500
(d) Dr. W and Cr. V by Rs. 10,500
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