Question 58 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 58 Chapter 5 of +2-A

Question 58 Chapter 5 of +2-A

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

  1. A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry Debtors 50,000).
  2. Creditors were written back by 5,000.
  3. Building was appreciated by 20% (Book Value of Building 2,00,000).
  4. Unrecorded Investments were valued at 15,000.
  5. A Provision of 2,000 was made for an Outstanding Bill for repairs.
  6. 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 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

 

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2 Book 1 min - Question 58 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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