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Question 19 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 Chapter 4 of +2- Part-
Q-19 - CH-4 - Usha +2 Book 2018 - Solution

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Question 19 Chapter 4 of +2-Part-1

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19. (Revaluation entries) X and Y share profits in 6:7 ratio. The future ratio will be 4:3 from 1st April 2018. They have decided to make a revaluation of assets and liabilities by passing revaluation entries before bringing into force the new ratio.
The following is the position of assets on 1st April 2018 with their revised values

 Book Value Revised Value
Building50,00055,200
Machinery25,00022,400
Creditors28,00029,300
Stock29,00032,900

The solution of Question 19 Chapter 4 of +2 Part-1: – 

(i) If there is no other information.

Journal
DateParticulars
L.F.DebitCredit
2018     
Apr. 1Building a/c (Rs.55,200-50,000)Dr. 5,200 
 Stock a/c (Rs.32,900-29,000)Dr. 3,900 
 To Revaluation A/c   9,100
 (Being increase in the value of assets recorded in the books)   15,000
      
 Revaluation a/cDr. 2,600 
 To Machinery A/c (Rs.25,000-22,400)   2,600
 (Being decrease in the value of assets recorded in the books).    
      
 Revaluation A/cDr. 1,300 
 To Creditors A/c   1,300
 (Being increase in the amount of liability recorded in the books)    
      
 Revaluation a/c (Rs.9,100-3,900)Dr. 5,200 
 To X’s Capital a/c   2,400
 To Y’s Capital a/c   2,800
 (Being Profit on revaluation a/c transfer to partners capital a/c in O.P.S.R)    
      

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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