1.

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.

Answer» 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.


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