Question 51 Chapter 5 of +2-A
Table of Contents
51. Pass entries in the firm’s journal for the following on admission of a partner:
(i) Machinery be reduced by 16,000 and Building be appreciated by 40,000.
(ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to 80,000.
(iii) Provision for warranty claims be increased by 12,000.
The solution of Question 51 Chapter 5 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Revaluation A/c | Dr | 3,01,000 | |||
| To Machinery A/c | 3,01,000 | ||||
| (Being Value of machinery reduced ) | |||||
| Building A/c | Dr | 40,000 | |||
| To Revaluation A/c | 40,000 | ||||
| (Being value of building appreciated) | |||||
| Revaluation A/c | Dr | 4,000 | |||
| To Provision for Doubtful Debts A/c | 4,000 | ||||
| (Being Provision created for doubtful debts) | |||||
| Revaluation A/c | Dr | 12,000 | |||
| To Provision for Warranty Claims A/c | 12,000 | ||||
| (Being Recording of liability in the books) | |||||
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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