Question

Kapil, Sachin and Shikhar de partners sharing profits and losses in the ratio of 2:2:1
Sachin retires and on the date of his retirement, following adjustments were agreedom
(1) Value of Investments is to be increased by 3 16,500
(6) Value of stock to be decreased by 36,000.
(7) Machinery of the book value of 7 1.40,000 is to be reduced by 10%
() provision for doubtful debts @ 10% is to be created on debtors of book value of
(1) An item of 5,000 included in bills payable is not likely to be claimed, hence is to
be writen back
Pass necessary Journal entries and prepare the Revaluation Account.​

Answer 1

Explanation:

Revaluation A/c Dr 50000

To stock A/c 36000

To machinery A/c 14000

To provision for bad

debts A/c

Investment A/c Dr 16500

Bills payable A/c Dr 5000

To revaluation A/c 21500

kapil capital A/c Dr 11400

sachin capital A/c Dr 11400

shikhar capital A/c Dr 5700

To revaluation A/c 28500

Revaluation A/c

particular Amt particular Amt

To stock 36000 by investment 16500

To machinery 14000 By bill payable 5000

To provision By partner

for debts capital A/c

kapil 11400

Sachin 11400

shikhar 5700

50000 50000

• Note - Debtors value is not given to calculate
• provision for debts. so i only post a entry not a amount.