Question 20 Chapter 4 of +2-Part-1
20. (Revaluation account) A, B and C are partners in 3:2:1 ratio. On 31st March, 2018 the following revaluation were made:
Furniture Rs.25,000, revalued at Rs.22,000; Stock Rs.10,000, revalued at Rs.4,000; Debtors Rs.40,000, Provision required for doubtful debts @10%. Unrecorded liabilities Rs.1,000.
General Reserve was Rs.12,000. The partners have decided to change the ratio. The new ratio will be equal. General Reserve account is not to be closed.
Pass journal entries and prepare revaluation account.
The solution of Question 20 Chapter 4 of +2 Part-1: –
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| (i) | Revaluation a/c | Dr. | 14,000 | ||
| To Furniture A/c | 3,000 | ||||
| To Stock A/c | 6,000 | ||||
| To Provision for doubtful debts a/c | 4,000 | ||||
| To unrecorded liabilities a/c | 1,000 | ||||
| (Being revaluation of assets and treatment of liabilities recorded in the books) | |||||
| (ii) | A’s Capital a/c | Dr. | 7,000 | ||
| B’s Capital a/c | Dr. | 4,667 | |||
| C’s Capital a/c | Dr. | 2,333 | |||
| To Revaluation a/c | 14,000 | ||||
| (Being loss on revaluation distributed among partners in their old profit sharing ratio) | |||||
| (iii) | General Reserve a/c | Dr. | 12,000 | ||
| To A’s Capital a/c | 6,000 | ||||
| To B’s Capital a/c | 4,000 | ||||
| To C’s Capital a/c | 2,000 | ||||
| (Being balance of general reserve written off in old profit sharing ratio) | |||||
| (iv) | A’s Capital a/c | Dr. | 4,000 | ||
| B’s Capital a/c | Dr. | 4,000 | |||
| C’s Capital a/c | Dr. | 4,000 | |||
| To General Reserve a/c | 12,000 | ||||
| (Being loss on revaluation distributed) | |||||
| Revaluation A/c |
|||||
| Particular |
Amount | Particular | Amount | ||
| To Furniture a/c (decrease) | 3,000 | By loss on revaluation transferred to: | |||
| To Stock (decrease) | 6,000 | -A | 7,000 | ||
| To Prov. for doubtful debts (increase) | 4,000 | -B | 4,667 | ||
| To unrecorded liability | 1,000 | -C | 2,333 | 14,000 | |
| 14,000 | 14,000 | ||||
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
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Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
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- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
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