Question

2. Amalendu and Sameer share profits and losses in the ratio 3:2 respectively Their balance

sheet as on 31st March 2017 was as under.

Balance Sheet as on 31st March, 2017

Liabilities Amount (`) Assets Amount (`)

Sundry Creditors

Amlendu capital

Sameer capital

General reserve

10,000

60,000

40,000

20,000

Cash at bank

Sundry debtors

Land & Building

Stock

Plant and machinery

Furniture & fixture

12,000

24,000

50,000

16,000

20,000

8,000

1,30,000 1,30,000

On 1st April 2017 they admit Paresh into partnership. The term being that:

1 He shall pay ` 16,000 as his share of Goodwill 50% amount of Goodwill shall be

withdrawn by the old part 2 He shall have to bring in ` 20,000 as his Capital for 1/4 share in future profits.

3. For the purpose of Paresh’s admission it was agreed that the asssets would be revalued as

follows.

A) Land and Building is to be valued at ` 60,000

B) Plant and Machinery to be valued at `16,000

C) Stock valued at ` 20,000 and Furniture and Fixtures at ` 4,000

D) A Provision of 5% on Debtors would be made for Doubtful Debts.

Pass The necessary Journal Entries in the Books of a New Firm.
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Answer 1

here is your answer

Journal entries

Journal entriesDate

Journal entriesDateParticulars

Journal entriesDateParticulars

Journal entriesDateParticulars Amt.(Dr.)

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.)

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.)

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)Stock a/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)Stock a/cTo Revaluation a/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)Stock a/cTo Revaluation a/c(being stock revalued)

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)Stock a/cTo Revaluation a/c(being stock revalued)Creditors a/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)Stock a/cTo Revaluation a/c(being stock revalued)Creditors a/cTo Revaluation a/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)Stock a/cTo Revaluation a/c(being stock revalued)Creditors a/cTo Revaluation a/c(being creditors written off)

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)Stock a/cTo Revaluation a/c(being stock revalued)Creditors a/cTo Revaluation a/c(being creditors written off)Revaluation a/c

Journal entriesDateParticulars Amt.(Dr.)Amt.(Cr.) Revaluation A/cTo Fixed assets A/c(being fixed assets revalued)Revaluation A/cTo Provision on debtors a/c(being provision on debtors created)Stock a/cTo Revaluation a/c(being stock revalued)Creditors a/cTo Revaluation a/c(being creditors written off)Revaluation a/cTo A’s capital