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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
At the time of admission of a partner Suresh, assets and liabilities of Ramesh and Naresh were revalued as follows: (a) A Provision for Doubtful Debts @ 10% was made on Sundry Debtors (₹50,000); (b) Creditors were written back by ₹5,000; (c) Building was appreciated by 20% (Book Value ₹2,00,000); (d) Unrecorded Investments were valued at ₹15,000; (e) A Provision of ₹2,000 was made for an outstanding bill for repairs; (f) Unrecorded liability towards suppliers was ₹3,000. Pass the necessary Journal entries.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (i) | Revaluation A/c Dr. | 10,000 | ||
| To Provision for Doubtful Debts A/c | 5,000 | |||
| To Provision for Outstanding Repairs Bill A/c | 2,000 | |||
| To Creditors A/c (unrecorded liability) | 3,000 | |||
| (Decrease in assets, increase in liabilities and new provisions) | ||||
| (ii) | Creditors A/c Dr. (written back) | 5,000 | ||
| Building A/c Dr. (20% of 2,00,000) | 40,000 | |||
| Investments A/c Dr. (unrecorded) | 15,000 | |||
| To Revaluation A/c | 60,000 | |||
| (Increase in assets and decrease in liabilities) | ||||
| (iii) | Revaluation A/c Dr. | 50,000 | ||
| To Ramesh’s and Naresh’s Capital A/cs (in their profit-sharing ratio) | 50,000 | |||
| (Profit on revaluation transferred to the old partners) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 4 Q.48 - Admission of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Admission of a Partner.
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