Punit, Ramit and Akshit were partners sharing profits equally. Akshit retired on 1st April, 2023. Punit and Ramit decided to continue the business and share profits in the ratio of 3 : 2. They also decided to give effect to the change in values of assets and liabilities without changing their book values.
| Book Values (₹) | Revised Values (₹) | |
| Land | 5,50,000 | 8,50,000 |
| Building | 2,50,000 | 2,10,000 |
| Computers | 1,00,000 | 70,000 |
| Computer Softwares | 5,00,000 | 4,00,000 |
| Sundry Creditors | 70,000 | 60,000 |
| Workmen Compensation Claim | – | 5,000 |
Pass an adjustment entry.
Solution :
