Question 41: 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.
(iv) Furniture (Book Value 50,000) is to be reduced by 40%.
(v) Furniture (Book Value 50,000) is to be reduced to 40%.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
(i) |
|
|
|
|
|
|
a. |
Revaluation A/c |
Dr. |
|
16,000 |
|
|
To Machinery A/c |
|
|
|
16,000 |
|
|
|
(Being Machinery be reduced) |
|
|
|
|
|
|
|
|
|
|
|
|
b. |
Building A/c |
Dr. |
|
40,000 |
|
|
|
To Revaluation A/c |
|
|
|
40,000 |
|
|
(Being Building be appreciated) |
|
|
|
|
|
(ii) |
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
4,000 |
|
|
|
To Provision for Doubtful Debts A/c |
|
|
|
4,000 |
|
|
(Being provision be created for Doubtful Debts @ 5% of Debtors amounting to 80,000) |
|
|
|
|
|
(iii) |
Revaluation A/c |
Dr. |
|
12,000 |
|
|
|
To Provision for Warranty Claims A/c |
|
|
|
12,000 |
|
|
(Being Provision for warranty claims be increased) |
|
|
|
|
|
(iv) |
Revaluation A/c |
Dr. |
|
20,000 |
|
|
|
To Furniture A/c |
|
|
|
20,000 |
|
|
(Being Furniture (Book Value 50,000) is to be reduced by 40%) |
|
|
|
|
|
(v) |
Revaluation A/c |
Dr. |
|
30,000 |
|
|
|
To Furniture A/c |
|
|
|
30,000 |
|
|
(Being Furniture (Book Value 50,000) is to be reduced to 40%) |
|
|
|
|
Question 42:
Pass entries in firm's Journal for
the following on admission of a partner:
(i) Unrecorded Investments worth `20,000 are to be
accounted.
(ii) Unrecorded liability towards suppliers for ` 5,000 is to be accounted.
(iii) An item of `
1,600 included in Sundry Creditors is not likely to be claimed and hence should
be written back.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
(i) |
Investment A/c |
Dr. |
|
20,000 |
|
|
|
To Revaluation A/c |
|
|
|
20,000 |
|
|
(Investments
recorded) |
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
Revaluation A/c |
Dr. |
|
5,000 |
|
|
|
To Creditors A/c |
|
|
|
5,000 |
|
|
(Liability
recorded) |
|
|
|
|
|
|
|
|
|
|
|
|
(iii) |
Creditors A/c |
|
|
|
|
|
|
To Revaluation A/c |
Dr |
|
1,600 |
|
|
|
(Liability
decreased) |
|
|
|
1,600 |
|
|
|
|
|
|
|
Question 43:
X and Y are partners
in a firm sharing profits in the ratio of 3 : 2. They
admitted Z as a partner and fixed the new profit-sharing ratio as 3 : 2 : 1. At the time of admission of Z, Debtors
and Provision for Doubtful Debts appeared at `50,000 and `5,000 respectively all
debtors are good. Pass the necessary Journal entries.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
(i) |
Provision for
Doubtful Debts A/c |
Dr. |
|
5,000 |
|
|
|
To Revaluation A/c |
|
|
|
5,000 |
|
|
(Provision on
Debtors reduced) |
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
Revaluation A/c |
Dr. |
|
5,000 |
|
|
|
To
X’s Capital A/c |
|
|
|
3,000 |
|
|
To
Y’s Capital A/c |
|
|
|
2,000 |
|
|
(Profit on
Revaluation transferred to Partners’ Capital A/c) |
|
|
|
|
|
|
|
|
|
|
|
Question 44:
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.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
(i) |
X’s Capital A/c |
Dr. |
|
24,000 |
|
|
|
Y’s Capital A/c |
Dr. |
|
16,000 |
|
|
|
To Investments A/c |
|
|
|
40,000 |
|
|
(Half of the
investments taken over by X and Y) |
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
Investment A/c |
Dr. |
|
10,000 |
|
|
|
To Revaluation A/c |
|
|
|
10,000 |
|
|
(Value of
investments increased) |
|
|
|
|
|
|
|
|
|
|
|
|
(iii) |
Revaluation A/c |
Dr. |
|
10,000 |
|
|
|
To X’s Capital A/c |
|
|
|
6,000 |
|
|
To Y’s Capital A/c |
|
|
|
4,000 |
|
|
(Profit on
revaluation transferred to Partners’ Capital A/c) |
|
|
|
|
|
|
|
|
|
|
|
Question 45:
Ashok and Bhaskar are
partners in a firm sharing profits in the ratio of 3 :
2. They admitted Chaman as
a partner for 1/4th share of profits. At the time of admission of Chaman, 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.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
(i) |
Bad Debts A/c |
Dr. |
|
6,000 |
|
|
|
To Debtors A/c |
|
|
|
6,000 |
|
|
(Bad debts
incurred) |
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
Provision for
Doubtful Debts A/c |
Dr |
|
6,000 |
|
|
|
To Bad Debts A/c |
|
|
|
6,000 |
|
|
(Bad debts
adjusted) |
|
|
|
|
|
|
|
|
|
|
|
|
(iii) |
Revaluation A/c
(WN 1) |
Dr. |
|
1,500 |
|
|
|
To Provision for Doubtful Debts A/c |
|
|
|
1,500 |
|
|
(Provision
created) |
|
|
|
|
|
|
|
|
|
|
|
|
(iv) |
Ashok’s Capital A/c
|
Dr. |
|
900 |
|
|
|
Bhaskar’s Capital A/c |
Dr. |
|
600 |
|
|
|
To Revaluation A/c |
|
|
|
1,500 |
|
|
(Loss on
revaluation transferred to Partners’ Capital A/c) |
|
|
|
|
|
|
|
|
|
|
|
Working
Notes:
WN1: Calculation
of Provision for Doubtful Debts
Provision to be created = (76,000 - 6,000)×5/100= ` 3,500
Old Provision = ` 2,000
New Provision to be created = 3,500 - 2,000 = 1,500
Ts Grewal Solution 2024-2025
Click below for more Questions
Class 12 / Volume – I