K and S are partners shoring profits & losses in the ratio of 3:2. They admitted P as a partner. Pass Journal entries for the following on P's admission: (3) (a) Value of furniture is to be increased to 50,000 (Book valve 30,000) (b) Creditors are written back by ₹ 5,000 (c) Debtors 80,000, existing provision for doubtful debts is 4,000 and Bad debts are to be written off on p's admission * 5,000.
Answers & Comments
Answer:
(a) When the value of furniture is increased to ₹50,000:
Furniture A/c Dr ₹20,000
To Revaluation A/c ₹20,000
(b) When creditors are written back by ₹5,000:
Creditors A/c Dr ₹5,000
To Revaluation A/c ₹5,000
(c) When debtors are ₹80,000, existing provision for doubtful debts is ₹4,000, and bad debts of ₹5,000 are written off on P's admission:
Debtors A/c Dr ₹79,000
To Provision for Doubtful Debts A/c ₹4,000
To Bad Debts A/c ₹5,000
To Revaluation A/c ₹70,000
Note: The figures mentioned in the journal entries are based on the given information. Please ensure the accuracy of the figures before recording the entries.