Double Entry Book Keeping Ts Grewal Volume I 2021-2022 Solutions for Class 12

Commerce Accountancy Chapter 5 - Admission Of A Partner

Page No 5.90:

Question 46:

Pass entries in the firm's journal for the following on admission of a partner:
(i) Machinery be reduced by ` 16,000 and Building be appreciated by ` 40,000.
(ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to ` 80,000.
(iii) Provision for warranty claims be increased by` 12,000.

(iv) Furniture (Book Value `50,000) is to be reduced by 40%.

(v) Furniture (Book Value `50,000) is to be reduced by 60%.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount `	Credit Amount `

(i)	Revaluation A/c	Dr.		16,000
	To Machinery A/c				16,000
	(Value of machinery decreased)

	Building A/c	Dr.		40,000
	To Revaluation A/c				40,000
	(Value of building increased)

(ii)	Revaluation A/c
	To Provision for Doubtful Debts A/c	Dr		4,000
	(Provision created on debtors)				4,000

(iii)	Revaluation A/c	Dr.		12,000
	To Provision for Warranty Claims A/c				12,000
	(Liability recorded)

(iv)	Revaluation A/c		Dr.	20,000
	To Furniture A/c (Furniture (Book Value `50,000) is to be reduced by 40%)				20,000
(v)	Revaluation A/c			30,000
	To Furniture A/c (Furniture (Book Value `50,000) is to be reduced by 60%)				30,000

Page No 5.91:

Question 47:

Pass entries in firm's Journal for the following on admission of a partner:
(i) Unrecorded Investments worth `20,000 are to be accounted.
(ii) Unrecorded liability towards suppliers for ` 5,000 is to be accounted.
(iii) An item of `1,600 included in Sundry Creditors is not likely to be claimed and hence should be written back.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount `	Credit Amount `

(i)	Investment A/c	Dr.		20,000
	To Revaluation A/c				20,000
	(Investments recorded)

(ii)	Revaluation A/c	Dr.		5,000
	To Creditors A/c				5,000
	(Liability recorded)

(iii)	Creditors A/c
	To Revaluation A/c	Dr		1,600
	(Liability decreased)				1,600

Page No 5.91:

Question 48:

X and Y are partners in a firm sharing profits in the ratio of 3 : 2. They admitted Z as a partner and fixed the new profit-sharing ratio as 3 : 2 : 1. At the time of admission of Z, Debtors and Provision for Doubtful Debts appeared at `50,000 and `5,000 respectively all debtors are good. Pass the necessary Journal entries.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount `	Credit Amount `

(i)	Provision for Doubtful Debts A/c	Dr.		5,000
	To Revaluation A/c				5,000
	(Provision on Debtors reduced)

(ii)	Revaluation A/c	Dr.		5,000
	To X’s Capital A/c				3,000
	To Y’s Capital A/c				2,000
	(Profit on Revaluation transferred to Partners’ Capital A/c)

Page No 5.92:

Question 49:

X and Y are partners in a firm sharing profits in the ratio of 3 : 2. They admitted Z as a partner for 1/4th share. At the time of admission of Z, Stock (Book Value `1,00,000) is to be reduced by 40% and Furniture (Book Value `60,000) is to be reduced to 40%. Pass the necessary Journal entries.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount `	Credit Amount `

	Revaluation A/c	Dr.		76,000
	To Stock A/c				40,000
	To Furniture A/c				36,000
	(Value of assets decreased)

	X’s Capital A/c	Dr.		45,600
	Y’s Capital A/c	Dr.		30,400
	To Revaluation A/c				76,000
	(Loss on Revaluation transferred to Partners’ Capital A/c)

Page No 5.92:

Question 50:

X and Y are partners sharing profits in the ratio of 3 : 2. They admitted Z as a partner for 1/4th share of profits. At the time of admission of Z, Investments appeared at `80,000. Half of the investments to be taken by X and Y in their profit-sharing ratio at book value. Remaining investments were valued at ` 50,000. Pass the necessary Journal entries.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount `	Credit Amount `

	X’s Capital A/c	Dr.		24,000
	Y’s Capital A/c	Dr.		16,000
	To Investments A/c				40,000
	(Half of the investments taken over by X and Y)

	Investment A/c	Dr.		10,000
	To Revaluation A/c				10,000
	(Value of investments increased)

	Revaluation A/c	Dr.		10,000
	To X’s Capital A/c				6,000
	To Y’s Capital A/c				4,000
	(Profit on revaluation transferred to Partners’ Capital A/c)