U, V and W are partners sharing profits in the ratio of 2:3:5. Their new ratio will be 5:3:2. 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 | 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 |
1
Dr. W and Cr. U by Rs. 10,500
2
Dr. U and Cr. W by Rs. 10,500
3
Dr. V and Cr. U by Rs. 10,500
4
Dr. W and Cr. V by Rs. 10,500