Question

2. revaluation of Assets and Reassessment of Liabilities
Pass entries in the firm's Journal for the following on admission of a partner
(i) Machinery be reduced by 16,000 and Building be appreciated by40000
(ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting 80000
(iii) Provision for warranty claims be increased by 12,000.
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Answer 1

Answer:

revaluation a/c Dr 16,000

to Machinery a/c

Revaluation a/v Dr 4,000

to PDD 4,000

revaluation a/c 12,000

Provision for claims a/c Dr