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12th | Admission Of A Partner | Question No. 46 To 50 | Ts Grewal Solution 2023-2024

Double Entry Book Keeping Ts Grewal Vol. 1 2019 Solutions for Class 12 Commerce ACCOUNTANCY Chapter 5 - Admission Of A Partner

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:


Journal

Date

Particulars

L.F.

Debit

`

Credit

`

 

 

 

 

 

 

 

Revaluation A/c 

Dr.

 

76,000

 

 

    To Stock A/c 

 

 

 

40,000

 

    To Furniture A/c

 

 

 

36,000

 

(Value of assets decreased)

 

 

 

 

 

 

 

 

 

 

 

 X’s Capital A/c

Dr.

 

45,600

 

 

 Y’s Capital A/c

Dr.

 

30,400

 

 

   To Revaluation A/c 

 

 

 

76,000

 

(Loss on Revaluation transferred to Partners’ Capital A/c)

 

 

 

 

 

 

 

 

 

 

Question 47;                                                                                                                                                                                                            X and Y are partners sharing profits in the ratio of 3 : 2. They admitted 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 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

 

 

     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 - 6,0005/100=   ` 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

   `

 

 

 

 

 

 

 

 (i)

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

 

 

(Increase in liabilities, decrease in assets and creation of reserves and provisions transferred to Revaluation Account)

 

 

 

 

 

 

 

 

 

 

 (ii)

Creditors A/c                                       Dr.

 

 

5,000

 

 

 

Building A/c                                        Dr.

 

 

40,000

 

 

Investments A/c                                   Dr.

 

 

15,000

 

 

To Revaluation A/c

 

 

60,000

 

 

(Increase in assets and decrease in liabilities
transferred to Revaluation Account)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revaluation A/c

Dr.

 

50,000

 

 

 

To Old Partners’ Capital A/c

 

 

50,000

 

 

(Profit on Revaluation transferred to Partners’ Capital)

 

 

 

 

 

 

 

 

 

 

 

Question 50:


Om and Shiv are partners in a firm sharing profits equally.

 

BALANCE SHEET (Extract)

Liabilities

`

Assets

 

`

 

 

Debtors

Less: Provision for Doubtful Debts

1,50,000

15,000

 

1,35,000

 

 

 

 

 

 

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

 

 

 

 

Ts Grewal Solution 2023-2024

Click below for more Questions

Class 12 / Volume – I

Chapter 4 – Admission Of A Parnter

 

Question No. 1 To 5
Question No. 6 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35