Q.No.58 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 58 Chapter 5 of +2-A

58. At the time of admission of a partner C, assets and liabilities of A and B were revalued as follows:

1. A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry Debtors 50,000).
2. Creditors were written back by 5,000.
3. Building was appreciated by 20% (Book Value of Building 2,00,000).
4. Unrecorded Investments were valued at 15,000.
5. A Provision of 2,000 was made for an Outstanding Bill for repairs.
6. Unrecorded Liability towards suppliers was 3,000.
   Pass necessary Journal entries.

 

The solution of Question 58 Chapter 5 of +2-A: -

 

Date	Particulars		L.F.	Debit	Credit
	Creditors A/c	Dr		5,000
	Building A/c	Dr		40,000
	Investment A/c	Dr		15,000
	To X’s Capital A/c				60,000
	(Being recording the Increase in the value of assets and decrease in the value of liabilities in books)
	Revaluation A/c	Dr		10,000
	To Provision for Doubtful Debts A/c				5,000
	To Reserve for outstanding Repairs Bill A/c				2,000
	To Creditors A/c				3,000
	(Being Increase in liabilities, decrease in assets and creation of reserves and provisions transferred to Revaluation Account)
	Revaluation A/c	Dr		50,000
	To Old Partners’ Capital A/c				50,000
	(Being profit on revaluation transfer to partner’s capital a/c)

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

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