Question 58 Chapter 5 of +2-A - T.S. Grewal 12 Class Part

Question 58 Chapter 5 of +2-A

Table of Contents

58. At the time of admission of a partner C, assets and liabilities of A and B were revalued as follows:

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A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry Debtors 50,000).
Creditors were written back by 5,000.
Building was appreciated by 20% (Book Value of Building 2,00,000).
Unrecorded Investments were valued at 15,000.
A Provision of 2,000 was made for an Outstanding Bill for repairs.
Unrecorded Liability towards suppliers was 3,000.
Pass necessary Journal entries.

The solution of Question 58 Chapter 5 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
	Creditors A/c	Dr		5,000
	Building A/c	Dr		40,000
	Investment A/c	Dr		15,000
	To X’s Capital A/c				60,000
	(Being recording the Increase in the value of assets and decrease in the value of liabilities in books)
	Revaluation A/c	Dr		10,000
	To Provision for Doubtful Debts A/c				5,000
	To Reserve for outstanding Repairs Bill A/c				2,000
	To Creditors A/c				3,000
	(Being Increase in liabilities, decrease in assets and creation of reserves and provisions transferred to Revaluation Account)
	Revaluation A/c	Dr		50,000
	To Old Partners’ Capital A/c				50,000
	(Being profit on revaluation transfer to partner’s capital a/c)

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

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