Pinky and Rocky are partners in a firm sharing profit in the ratio of 3 : 2. Their Balance Sheet as at 31st March 2024 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Pinky’s Capital A/c Rocky’s Capital A/c Creditors |
54,000 36,000 36,000 |
Cash Machinery Building |
18,000 36,000 72,000 |
| 1,26,000 | 1,26,000 |
Goodwill of the firm is valued at ₹ 36,000 and the building at ₹ 90,000 on 31st March, 2024. The partners decide to share profits equally with effect from 1st April, 2024.
Pass the necessary accounting entries without affecting the existing figure of building.
Solution:-
