Question 55 Chapter 5 of +2-A
Table of Contents
55. X and Y are partners sharing profits in the ratio of 3 : 2. They admitted Z as a partner for 1/4th share of profits. At the time of admission of Z, Investments appeared at 80,000. Half of the investments to be taken by X and Y in their profit-sharing ratio at book value. Remaining investments were valued at 50,000. Pass the necessary Journal entries.
The solution of Question 55 Chapter 5 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| X’s Capital A/c | Dr | 24,000 | |||
| Y’s Capital A/c | Dr | 16,000 | |||
| To Investments A/c | 40,000 | ||||
| (Being value of stock and furniture reduced) | |||||
| Investment A/c | Dr | 10,000 | |||
| To Revaluation A/c | 10,000 | ||||
| (Being value of Investment increased) | |||||
| Revaluation A/c | Dr | 10,000 | |||
| To X’s Capital A/c | 6,000 | ||||
| To Y’s Capital A/c | 4,000 | ||||
| (Being profit on revaluation distributed among old partners) | |||||
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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