Revaluation Account Partners' Capital and Current
You are
Assets
1,50,000
1,00,000
2,50,000
Land and Building
Plant and Machinery
Furniture and Fittings
Stock
Debtors
Less: Provision for Doubtful Debts
Bills Receivable
Bank
1.50.000
1,00,000
25,000
75,000
40,000
30,000
75,000
5,000
Citas
Payable
70,000
1,30,000
50,000
5,00,000
70,000
30,000
50,000
5,00,000
al Zis to introduce * 1,25,000 as capital.
b) Goodwill of the firm was valued at nil.
dit is found that the creditors included a sum of 7,500 which was not to be paid. But it was also
found that there was a liability for Compensation to Workmen amounting to 10,000.
di Provision for doubtful debts is to be created @ 10% on debtors.
lel in regard to the Partners' Capital Accounts, present Fixed Capital Accounts Method is to be converted
into Fluctuating Capital Accounts Method.
Bills of 20,000 accepted from creditors were not recorded in the books.
19 X provides 50,000 loan to the business carrying interest @ 10% p.a.
You are required to prepare Revaluation Account, Partners' Capital Accounts, Bank Account and the Balance
Sheet of the new firm.
rtner's Capital
Acounts and the Balance Sheet of the new firm.
and are partners sharing profits equally. Their Balance Sheet as on 31st March, 2020 is given below.
Z is admitted as a new partner for 1/4th share under the following terms:
Answers
Answer:
Revaluation Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Reserve for D. Debts
2,500
Creditors
7,500
Liability for WCF 10,000
Loss transferred to
X’s Current A/c
2,500
Y’s Current A/c
2,500
12,500
12,500
Partners’ Current Accounts
Dr.
Cr.
Particulars
X Y
Particulars
X Y
Revaluation A/c
2,500
2,500
Balance b/d
40,000
30,000
Balance c/d
37,500
27,500
40,000
30,000
40,000
30,000
Partners’ Capital Accounts
Dr.
Cr.
Particulars
X Y Z
Particulars
X Y Z
Balance b/d
1,50,000
1,00,000
Current A/c 37,500 27,500
Balance c/d
1,87,500 1,27,500
1,25,000
Bank
1,25,000
1,87,500 1,27,500
1,25,000
1,87,500 1,27,500
1,25,000
Balance Sheet
as on 1st April, 2018
Liabilities
Amount
Rs
Assets
Amount
Rs
Creditors (1,30,000 – 7,500 – 20,000)
1,02,500
Land and Building
1,50,000
Bills Payable (50,000 + 20,000)
70,000
Plant and Machinery
1,00,000
Capital A/cs:
Fixture and Fittings
25,000
X
1,87,500
Stock 75,000
Y
1,27,500
Bills Receivables
30,000
Z
1,25,000
4,40,000
Bank (50,000 + 1,25,000 + 50,000)
2,25,000
X's Loan
50,000
Debtors
75,000
Liability for WCF
10,000
Less: 10% Reserve for D. Debts
7,500
67,500
6,72,500