Question 38 Chapter 5 of +2- Part-

Question 38 Chapter 5 of +2-Part-1

38. (Revaluation Entries) Pass Journal Entries for the following revaluations.
(a) Stockk Rs. 12,000 was increased to Rs. 15,000.
(b) Stock Rs. 12,000 was increased by 25%
.(c) Stock Rs. 12,000 was decreased by Rs. 10,000.
(d) Stock Rs. 12,000 was decreased to Rs. 10,000.
(e) Stock Rs. 12,000 was undervalued by 25%.
(f)Stock Rs. 12,000 was valued 25% above cost.

The solution of Question 38 Chapter 5 of +2 Part-1: – 

Journal
DateParticulars
L.F.DebitCredit
2019     
a)Stock A/cDr. 3,000 
 To Revaluation A/c   3,000
 (Being stock increased by Rs. 3,000)   
     
b)Stock A/cDr. 3,000 
 To Revaluation A/c   3,000
 (Being 25% increased stock)    
      
c)Revaluation A/cDr. 10,000 
 To Stock A/c   10,000
 (Being stock decreased by Rs. 10,000)    
      
d)Revaluation A/cDr. 2,000 
 To Stock A/c   2,000
 (Being goodwill written off)    
      
e)Stock A/cDr. 4,000 
 To Revaluation A/c   4,000
 (Being stock valued 25% less not correct (25/75 X 12,000)    
      
f)Revaluation A/cDr. 2,400 
 To Stock A/c   2,400
 (Being stock valued 25% above the cost (12,000 X 25/125))    
      
ii)Premium A/cDr. 10,000 
 B’s Capital A/cDr. 6,667 
 To A’s Capital A/c   10,000
 To C’s Capital A/c   6,667
 (Being goodwill brought of D and B’s share given to A and C sacrifice ratio)    
      
e)Entry D (i) and (ii) and the following entries    
 A’s Capital A/cDr. 25,000 
 B’s Capital A/cDr. 16,667 
 C’s Capital A/cDr. 8,333 
 To goodwill A/c   50,000
 (Being goodwill written off)    
      
f)Revaluation A/cDr. 2,400 
 To Stock A/c   2,400
 (Being stock valued 25% above the cost (12,000 X 25/125))    
     

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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

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

2 Book 1 min - Question 38 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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