Question

0.3 0. V and Ware partners sharing profits in the ration of 2:3:5. They also decided
to record the effect of the following revaluations and reassessments without
affecting the book values of assets and liabilities by passing a single adjustment
entry:
Book Value (Rs) Revised Value (Rs)
Land and Building 3,00.000
3.50,000
Furniture
1.50,000
1,00,000
Sundry Creditors 60,000
20.000
Outstanding Salaries 10,000
15,000
The single adjustment entry will
(a) Dr. W and Cr. U by 10,500
(b) Dr. U and Cr. W by Rs. 10,500
(c) Dr. V and Cr. U by Rs. 10,500
(d) Dr. W and Cr. V by Rs. 10,500
(​

Answer 1

Answer:

(a) Dr. W and cr. U by 10,500

Answer 2

"(c) Dr. V and Cr. U by Rs. 10,500 "

Explanation:

      Land and buildings a/c        dr               50000

      Outstanding Salaries a/c     dr                5000

                         To  Revaluation   a/c                              55000

   

      Revaluation a/c                    dr              

                         To Furniture a/c                                      50000

                         To Sundry Creditors a/c                         40000

  Therefore,

                     90000 - 55000 = 35000

             so,   35000 x 3/5       = 10500