Question

X and Y are partners sharing profits in the ratio of 3 : 2. Pass Journal
entries for the following on the admission of Z, a new partner.

(i) Value of furniture is to be increased by Rs.10,000 (Book value of
furniture is Rs.50,000).


(ii) Value of furniture is to be increased to Rs.50,000 (Book value of
furniture is Rs.40,000).


(iii) Value of furniture is to be brought up to 120% of its value (Book value
of furniture is Rs.20,000).


(iv) Stock is found undervalued by Rs.4,000 (Book value of stock is Rs.25,000).​

Answer 1

Answer:

Journals:

(i) Furniture A/c ...Dr. 10000

To Revaluation A/c 10000

(ii) Same as previous jounal (i)

(iii) Furniture A/c ...Dr. 12000

To Revaluation A/c 12000

(iv) Revaluation A/c ....Dr. 4000

To Stock A/c

(v) Revaluation A/c ....Dr. 28000

To Revaluation Profit A/c 28000

(vi) Revaluation Profit A/c ....Dr. 28000

To X A/c 16800

To Y A/c 11200