Question 27 Chapter 6 - Unimax Class 12 Part 1

Question 27 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 27 Chapter 6 – Unimax Class 12 Part 1: –

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

27. A, B and C are equal partners in a firm. B retirement his claim including his capital and his share of goodwill is ₹40000. He is paid in kind a vehicle valued at ₹20000 unrecorded in the books of the firm till the date of retirement and the balance in cash. Give the journal entries for recording the payment to B in the books of the firm.

The solution of Question 27 Chapter 6 – Unimax Class 12 Part 1: –

Journal Entries

Date	Particulars		L.F.	Debit	Credit

	Vehicle a/c	Dr.		20,000
	To revaluation a/c				20,000
	(Being unrecorded asset now recorded in books)

	Revaluation a/c	Dr.		20,000
	To A’s capital a/c				6,666
	To B’s capital a/c				6,667
	To C’s capital a/c				6,667
	(Being profit on revaluation transferred to capital a/c of partners)

	B’s capital a/c	Dr.		46,667
	To Vehicle a/c				20,000
	To cash a/c				26,667
	(being be take over vehicle and cash from business)