Question 46:
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. At the time of admission of Z,
Stock (Book Value `1,00,000)
is to be reduced by 40% and Furniture (Book Value `60,000) is to be reduced to
40%. Pass the necessary Journal entries.
Answer:
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Journal |
|||||
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
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Revaluation A/c |
Dr. |
|
76,000 |
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To Stock A/c |
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40,000 |
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To Furniture A/c |
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36,000 |
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(Value of assets
decreased) |
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X’s
Capital A/c |
Dr. |
|
45,600 |
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Y’s
Capital A/c |
Dr. |
|
30,400 |
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To
Revaluation A/c |
|
|
|
76,000 |
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(Loss on
Revaluation transferred to Partners’ Capital A/c) |
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Question 47;
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) |
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(ii) |
Investment A/c |
Dr. |
|
10,000 |
|
|
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To Revaluation A/c |
|
|
|
10,000 |
|
|
(Value of
investments increased) |
|
|
|
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|
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(iii) |
Revaluation A/c |
Dr. |
|
10,000 |
|
|
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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) |
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Question 48:
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 |
|
|
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To Debtors A/c |
|
|
|
6,000 |
|
|
(Bad debts
incurred) |
|
|
|
|
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(ii) |
Provision for
Doubtful Debts A/c |
Dr |
|
6,000 |
|
|
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To Bad Debts A/c |
|
|
|
6,000 |
|
|
(Bad debts
adjusted) |
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|
|
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(iii) |
Revaluation A/c
(WN 1) |
Dr. |
|
1,500 |
|
|
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To Provision for Doubtful Debts A/c |
|
|
|
1,500 |
|
|
(Provision
created) |
|
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(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) |
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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
Question 49:
At the time of admission of a
partner Suresh,
assets and liabilities of Ramesh and Naresh were
revalued as follows:
(a) A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry
Debtors ` 50,000).
(b) Creditors were written back by
`5,000.
(c) Building was appreciated by 20% (Book Value of Building
`2,00,000).
(d) Unrecorded Investments were valued at `15,000.
(e) A Provision of `2,000
was made for an Outstanding Bill for repairs.
(f) Unrecorded Liability towards suppliers was `3,000.
Pass necessary Journal entries.
Answer:
|
Journal |
|
||||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
||
|
|
|
|
|
|
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||
|
(i) |
Revaluation A/c |
Dr. |
|
10,000 |
|
|
|
|
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To Provision for Doubtful Debts A/c |
|
|
|
5,000 |
|
|
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To Reserve for outstanding Repairs Bill A/c |
|
|
|
2,000 |
|
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To Creditors A/c |
|
|
3,000 |
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||
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(Increase in liabilities, decrease in assets and creation of reserves and provisions transferred to Revaluation Account) |
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(ii) |
Creditors A/c Dr. |
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5,000 |
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Building A/c Dr. |
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|
40,000 |
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Investments A/c Dr. |
|
|
15,000 |
|
||
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To Revaluation A/c |
|
|
60,000 |
|
||
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(Increase in assets and decrease
in liabilities |
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Revaluation A/c |
Dr. |
|
50,000 |
|
|
|
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To Old Partners’ Capital A/c |
|
|
50,000 |
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(Profit on Revaluation transferred to Partners’ Capital) |
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Question 50:
Om and Shiv are partners in a firm sharing profits equally.
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BALANCE SHEET (Extract) |
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|
Liabilities |
` |
Assets |
|
` |
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Debtors Less: Provision for Doubtful Debts |
1,50,000 15,000 |
1,35,000 |
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An amount of `12,000 due from Mohan, a debtor, is to be written off as no longer receivable. Provision for Doubtful Debts on remaining debtors is to be maintained at the current rate.
What amount of Provision for Doubtful Debts should be credited to maintain its current rate?
Answer:
Current rate
Provision for Doubtful debts is 15,000×100/1,50,000=10%
|
Debtors |
= |
1,50,000 |
|
Less: Bad Debts |
= |
12,000 |
|
Debtors After Bad Debts |
= |
1,38,000 |
|
|
|
|
|
Provision for
Doubtful Debts @10% is to be maintained |
= |
13,800 |
|
|
|
|
|
Firm already has Provision of 15,000 |
|
|
|
|
|
|
|
Provision for Doubtful Debts Before Adjustment of Bad Debts |
= |
15,000 |
|
Less: Bad Debts |
= |
12,000 |
|
Balance of
Provision for Doubtful Debts after Adjustment of Bad Debts |
= |
3,000 |
|
|
|
|
|
Amount of Provision
for Doubtful Debts should be credited to maintain its current rate
=13,800-3,000= 10,800 |
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Ts Grewal Solution 2023-2024
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Class 12 / Volume – I