Question 20 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 20 Chapter 4 of +2- Part-

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: – 

 

In the Books of _______________
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 liabilities)       15,000
           
(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)        
           
(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 revaluation of assets and liabilities)        
           
(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    
To Stock (decrease) 6,000    
To Prov. for doubtful debts (increase) 4,000      
To unrecorded liability   1,000      
      By loss on revaluation transferred to:    
      -A 7,000  
      -B 4,667  
      -C 2,333 14,000
    14,000     14,000

 

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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

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2 Book 1 min - Question 20 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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