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Question 56 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 56 Chapter 5 of +2-A
Question No.56 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

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Question 56 Chapter 5 of +2-A

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56. X and Y are partners in a firm 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, Debtors and Provision for Doubtful Debts appeared at 76,000 and 8,000 respectively. 6,000 of the debtors proved bad. A provision of 5% is to be created on Sundry Debtors for doubtful debts. Pass the necessary
Journal entries.

The solution of Question 56 Chapter 5 of +2-A: –

 

DateParticulars
L.F.DebitCredit
 Bad debts A/cDr 6,000 
 To Debtors A/c   6,000
 (Being Bad debts incurred during the year)    
 Provision for Doubtful Debts A/cDr 6,000 
 To Bad Debts A/c   6,000
 (Being Bad debts adjusted with Provision for Doubtful Debts)    
 Revaluation A/c*1Dr 1,500 
 To Provision for Doubtful Debts A/c   1,500
 (Being new provision for doubtful debts created)    
 X’s Capital A/cDr 900 
 Y’s Capital A/cDr 600 
 To Revaluation A/c   1,500
 (Being Loss on revaluation distribution among the old partner in their old profit sharing ratio)    

 

Working Note: –

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Calculation of Provision for Doubtful Debts
Provision is always created on the Closing balance of Debtors

Closing balance of Debtors=Opening balance of Debtors– Bad Debts
 =76,0006,000
 =70,000
  
Total Provision For D/D=Closing balance of Debtors X Percentage of  Provision
 =70,000X5%
 =3,500
  
New Provision For D/D=Total Provision – (Old Provision – Bad Debts)
 =3,500(8,000-6,000)
 =3,500
2,000
 =1,500  

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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)

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

 

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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