Question 35 Chapter 3 of Class 12 Part - 1 VK Publication

Question 35 Chapter 3 of Class 12 Part – 1

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The solution of Question 35 Chapter 3 of Class 12 Part – 1: –

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

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

35. E, F and G are partners sharing profits in the ratio of 2:1:1. They decided that withe effect from April 1st, 2018, E shall receive 1/4th share in the profits.

On March 31, 2018 their Balance Sheet stood as follows:

Liabilities	Rs.	Assets	Rs.
Creditors	20,000	Cash	10,000
Capital A/cs:		Debtors	35,000
E 50,000		Stock	15,000
F 25,000		Land	60,000
G 25,000	1,00,000
	1,20,000		1,20,000

On this date, land was valued at Rs. 75,000; stock at Rs. 30,000 and a provision debtors is to be maintained.
Pass necessary journal entries in the books of the firm regarding the revaluation of assets.
Prepare Revaluation Account.

The solution of Question 35 Chapter 3 of Class 12 Part – 1: –

Journal Entry

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Date	Particulars		L . F	Dr. ₹	Cr. ₹
2018	Revaluation A/c	Dr.		2,000
April 1	To Provision for Doubtful Debts A/c				2,000
	( Being provision for Doubtful Debts created)
	Land A/c	Dr.		15,000
	Stock A/c	Dr.		15,000
	To Revaluation A/c				30,000
	( Being value of land and stock increased)
	Revaluation A/c	Dr.		28,000
	To E’s Capital A/c				14,000
	To F’s Capital A/c				7,000
	To G’s Capital A/c				7,000
	( Being profit on revaluation transferred to partners’ capital account in their old Ratio)

Revaluation Account

Particulars	Amount	Particulars	Amount
To Provision for Doubtful Debts A/c	2,000	By Land A/c	15,000
To Profit Transferred to		By Stock A/c	15,000
E’s Capital A/c 14,000
F’s Capital A/c 7,000
G’s Capital A/c 7,000	28,000
	30,000		30,000