Question

Amar and Akbar are partners in a firm sharing profits and losses in the ratio of

2:1 as on 31st March 2005. Their Balance Sheet was as under:

On 1st April 2005, they admit Antony into partnership on the following

conditions:

a. Antony has bring in a capital of Rs.1,50,000 for 1/5th share of the future

profits.

b. Stock and machinery were to be depreciated by Rs.6,000 and Rs.15,000

respectively.

c. Investments of Rs.15,000 not recorded in the books brought into accounts.

d. Provision for doubtful debts is to be created at 5% on debtors.

e. A liability of Rs.4,000 for outstanding repairs has been omitted to be

recorded in the books.

Give journal entries, prepare Revaluation Account, Capital Account, Bank

Account and the Balance Sheet.​

Answer 1

Answer:

Step-by-step explanation:

                              Journal Entries                                                                      

 Particulars           amount             amount                                

Investment a/c    15000

   To revaluation A/c                    15000

Revaluation A/c         27000

     To stock                                      6000

     To machinery                             15000

      To provision                                2000

     To O/s repair                                 4000

Amar's capital        8000

Akbar's capital        4000

To  Revaluation A/c                 12000

Bank A/c                  150,000

  To Antony's A/c                          150,000