Question 46:
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:
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Journal |
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
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(i) |
Provision for Doubtful Debts A/c |
Dr. |
|
5,000 |
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To
Revaluation A/c |
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|
5,000 |
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(Provision on Debtors reduced) |
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(ii) |
Revaluation A/c |
Dr. |
|
5,000 |
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To X’s Capital A/c |
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3,000 |
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To Y’s Capital A/c |
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2,000 |
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(Profit on Revaluation transferred
to Partners’ Capital A/c) |
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Question 47:
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 |
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
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(i) |
Bad Debts A/c |
Dr. |
|
6,000 |
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To Debtors
A/c |
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|
6,000 |
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|
(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 |
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|
6,000 |
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(Bad debts adjusted) |
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(iii) |
Revaluation A/c (WN
1) |
Dr. |
|
1,500 |
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To Provision for
Doubtful Debts A/c |
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|
1,500 |
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(Provision created) |
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(iv) |
Ashok’s Capital A/c |
Dr. |
|
900 |
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Bhaskar’s
Capital A/c |
Dr. |
|
600 |
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To
Revaluation A/c |
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|
1,500 |
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|
(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 48:
At
the time of admission of a partner Suresh, assets and liabilities of Ramesh and Nareshwere
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 |
|
||||||
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
||
|
|
|
|
|
|
|
||
|
(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 |
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|
2,000 |
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To Creditors A/c |
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|
3,000 |
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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. |
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15,000 |
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To Revaluation A/c |
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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 |
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|
50,000 |
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(Profit
on Revaluation transferred to Partners’ Capital) |
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Question 49:
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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` |
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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 |
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Debtors After Bad Debts |
= |
1,38,000 |
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Provision
for Doubtful Debts @10% is to be maintained |
= |
13,800 |
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Firm already has Provision of
15,000 |
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Provision for Doubtful Debts
Before Adjustment of Bad Debts |
= |
15,000 |
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Less: Bad Debts |
= |
12,000 |
|
Balance
of Provision for Doubtful Debts after Adjustment of Bad Debts |
= |
3,000 |
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Amount
of Provision for Doubtful Debts should be credited to maintain its current
rate =13,800-3,000= 10,800 |
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Question 50: Ashish and
Vishesh were partners sharing profits and losses in
the ratio of 3:2. Their Balance Sheet at 31st March, 2022 was as under:
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BALANCE
SHEET OF ASHISH AND VISHESH as at 31st March, 2022 |
|||||
|
Liabilities |
|
` |
Assets |
|
` |
||
|
Creditors |
|
30,000
|
Cash at Bank |
|
50,000 |
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|
Outstanding Electricity Bill |
|
20,000
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Debtors |
80,000 |
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Capital Acs:
|
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Less: Provision for Bad Debts |
2,000 |
78,000 |
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Ashish |
3,00,000 |
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Stock L |
|
12,000 |
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Vishesh |
2,00,000 |
5,00,000 |
Machinery |
|
3,00,000 |
||
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Profit and Loss A/c |
|
10,000 |
||
|
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5,50,000 |
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5,50,000 |
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On 1st
April, 2022, Manya was admitted into the firm with
1/4th share in the profits on the following terms:
(i) Manya will bring 1,00,000 as her capital and 50,000 as her share of goodwill
premium in cash.
(ii)
Outstanding electricity bill will be paid off.
(iii) Stock
was found over valued by 12,000.
Pass the
necessary Journal entries in the books of the firm on Manya's
admission. (CBSE 2023)
Answer:
|
Date |
Particulars |
|
Dr. (`) |
Cr. (`) |
|
(i) |
Outstanding Electricity Bill A/c |
Dr. |
20,000 |
|
|
|
To Bank A/c |
|
|
20,000 |
|
|
(Being Outstanding electricity
bill will be paid off) |
|
|
|
|
(ii) |
Revaluation Ac |
Dr. |
12,000 |
|
|
|
To Stock A/c |
|
|
12,000 |
|
|
(Being Stock was undervalued) |
|
|
|
|
(iii) |
Ashish's Capital A/c |
Dr. |
7,200 |
|
|
|
Vishesh's Capital A/c |
Dr. |
4,800 |
|
|
|
To Revaluation A/c |
|
|
12,000 |
|
|
(Being loss transferred in old
ratio) |
|
|
|
|
(iv) |
Ashish's Capital A/c |
Dr. |
6,000 |
|
|
|
Vishesh's Capital A/c |
Dr. |
4,000 |
|
|
|
To Profit & Loss A/c |
|
|
10,000 |
|
|
(Being accumulated loss
transferred in old ratio) |
|
|
|
|
(v) |
Bank A/c |
Dr. |
1,50,000 |
|
|
|
To Manya's Capital
A/c |
|
|
1,00,000 |
|
|
To Premium for Goodwill A/c |
|
|
50,000 |
|
|
(Being capital and her share of
goodwill premium brought) |
|
|
|
|
(vi) |
Premium for Goodwill A/c |
Dr. |
50,000 |
|
|
|
To Ashish's
Capital A/c |
|
|
30,000 |
|
|
To Vishesh's
Capital A/c |
|
|
20,000 |
|
|
(Being Premium for Goodwill
transferred in sacrificing ratio) |
|
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Ts Grewal Solution 2025-2026
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Class 12 / Volume – I