Question

Q. 3. X and Y are partners in a firm sharing profits and losses in the ratio 3:1 Their
balance sheet as on 31" December was as under :-
Balance Sheet
(As on 31 December 2017)
Liabilities
Rs.
Assets
Rs.
Creditors
18000
Cash in hand
7500
Capitals :-
Bills Receivables
1500
X - 17000
Debtors
8000
Y - 5500
22500
Stock
1000
Furniture
10000
Buildings
12500
40500
40500
On 1" January 2018 they admitted Z into partnership on following terms :-
1. He will pay Rs. 5500 as Capital for 1/5 share of profit.
2. He brings for Goodwill Rs. 2000.
3. Stock and Furniture will be depreciated by 10% and a Provision on Debtors
will be made @ 5%
4. Building will be appreciated by 20%
Prepare revaluation Account and Partners Capital A/C​

Answer 1

Answer:

(i) REVALUATION A/C

Dr. Cr.

Particulars Amount Particulars Amount

To Provision for Doubtful Debts 1700 By Prepaid advertisement Expenses 1200

To A's Capital

(revenue expense) 2100 By B's Capital

(personal expenses) 2000

By Loss transferred to:

- A's Capital a/c

- B's Capital a/c

- C's Capital a/c

300

200

100

3800 3800

(ii) PARTNER'S CAPITAL A/C

Dr. Cr.

Particulars A B C D Particulars A B C D

To Revaluation a/c

(personal) 2000 By Balance b/d 60000 40000 40000

To Revaluation a/c

(loss) 300 200 100 By Cash a/c 40000

To Balance c/d 61800 37800 39900 50000 By Creditors 10000

By revaluation expenses 2100

62100 40000 40000 50000 62100 40000 40000 50000

(iii) BALANCE SHEET

Dr. Cr.

Liabilities Amount Assets Amount

Capital a/cs:

- A

- B

- C

- D

61800

57800

39900

50000 Land and Building 50000

Bills Payable 10000 Plant and Machinery 40000

Creditors 30000

(-) D's Capital (10000) 20000 Furniture 30000

Stock 20000

Prepaid Advertisement

Expenses 1200

Debtors 30000

(-) Provision for (1700)

Doubtful debts

(+) Bills receivable 4000

dishonoured 32300

Bills receivable 20000

Bank (10000+40000-4000) 46000

239500 239500

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