4. Machinery is to be valued at 5%more than its book value .
5. Motor car is revalued at ?15500 . Retiring partner took over motor car at this value.
6. Deepak be paid ?2000 in cash and balance be transferred to his loan a/c .
Show necessary journal entries . Prepare revaluation a/c ,capital a/c and opening balance sheet of continuing partners.
Dear Student,
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Manoj’s Capital A/c | Dr. | 1,333 | |||
Naveen’s Capital A/c | Dr. | 1,000 | |||
Deepak’s Capital A/c | 667 | ||||
To Old Goodwill A/c | 3,000 | ||||
(Old goodwill written off) | |||||
Manoj’s Capital A/c | Dr. | 2,667 | |||
Naveen’s Capital A/c | 2,000 | ||||
To Deepak’s Capital A/c | 4,667 | ||||
(Goodwill credited to Deepak) | |||||
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs |
Particulars | Amount Rs |
|||
Motor Car | 4,500 | Stock | 1,350 | |||
Provision for DD | 450 | |||||
Machinery | 900 | |||||
Loss on Revaluation | ||||||
Manoj | 800 | |||||
Naveen | 600 | |||||
Deepak | 400 | 1,800 | ||||
4,500 | 4,500 | |||||
Dr. | Partners’ Capital Accounts | Cr. | |||||||
Particulars | Manoj | Naveen | Deepak | Particulars | Manoj | Naveen | Deepak | ||
Revaluation A/c | 800 | 600 | 400 | Balance b/d | 50,000 | 39,000 | 30,000 | ||
Old Goodwill A/c | 1,333 | 1,000 | 667 | Manoj’s Capital A/c | 2,667 | ||||
Motor Car | 15,500 | Naveen’s Capital A/c | 2,000 | ||||||
Deepak’s Capital A/c | 2,667 | 2,000 | |||||||
Cash A/c | 2,000 | ||||||||
Deepak Loan’s A/c | 16,100 | ||||||||
Balance c/d | 45,200 | 35,400 | |||||||
50,000 | 39,000 | 34,667 | 50,000 | 39,000 | 34,667 | ||||
Balance Sheet | ||||
Liabilities | Amount Rs |
Assets | Amount Rs |
|
Creditors | 7,000 | Cash (5,900 – 2,000) | 3,900 | |
Capital A/c | Debtors (Less Provision) | 18,050 | ||
Manoj | 45,200 | Stock | 14,850 | |
Naveen | 35,400 | 80,600 | Building | 48,000 |
Deepak’s Loan | 16,100 | Plant & Machinery | 18,900 | |
1,03,700 | 1,03,700 | |||