1.

At the time of admission of a partner C, assets and liabilities of A and B were revalued as follows:(a) A Provision for Doubtful Debts 10% was made on Sundry Debtors (Sundry Debtors ₹ 50,000).(b) Creditors were written back by ₹ 5,000.(c) Building was appreciated by 20% (Book Value of Building ₹ 2,00,000).(d) Unrecorded Investments were valued at ₹ 15,000.(e) A Provision of ₹ 2,000 was made for an Outstanding Bill for repairs.(f) Unrecorded Liability towards suppliers was ₹ 3,000.Pass necessary Journal entries.

Answer» At the time of admission of a partner C, assets and liabilities of A and B were revalued as follows:

(a) A Provision for Doubtful Debts 10% was made on Sundry Debtors (Sundry Debtors ₹ 50,000).

(b) Creditors were written back by ₹ 5,000.

(c) Building was appreciated by 20% (Book Value of Building ₹ 2,00,000).

(d) Unrecorded Investments were valued at ₹ 15,000.

(e) A Provision of ₹ 2,000 was made for an Outstanding Bill for repairs.

(f) Unrecorded Liability towards suppliers was ₹ 3,000.

Pass necessary Journal entries.


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