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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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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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