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

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

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Question 35 Chapter 3 of Class 12 Part – 1

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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:

LiabilitiesRs.AssetsRs.
Creditors20,000Cash10,000
Capital A/cs: Debtors35,000
E 50,000 Stock15,000
F 25,000 Land60,000
G 25,0001,00,000  
 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: –

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Journal Entry

Date

Particulars

L . FDr. ₹Cr. ₹
2018Revaluation A/cDr. 2,000 
April 1To Provision for Doubtful Debts A/c   2,000
 ( Being provision for Doubtful Debts created)    
 Land A/cDr. 15,000 
 Stock A/cDr. 15,000 
 To Revaluation A/c   30,000
 ( Being value of land and stock increased)    
 Revaluation A/cDr. 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

ParticularsAmount
To Provision for Doubtful Debts A/c2,000By Land A/c15,000
To Profit Transferred to By Stock A/c15,000
E’s Capital A/c 14,000   
F’s Capital A/c 7,000   
G’s Capital A/c 7,00028,000  
 30,000 30,000

 

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

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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