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Finding Closing Stock

On death of X...

Question

On death of X, assets and liabilities are revalued as under : Provision for doubtful debt raised by Rs. 1250,stock in trade increased by Rs. 1500 taken on record, Building increased by Rs.5100.find the profit and loss on revalutations.

Rs.5100

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Rs.5950

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Rs.5350

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Rs.6500

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Solution

The correct option is A Rs.5350
Particulars Amount (Rs.) PArticulars Amount (Rs.)
To provision for doubtful debts
A/c
To profit on revalution A/c (Bal.Fig.) 1250
5350 By stock trade A/c
By Building A/c 1500
5100
6600 6600

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Similar questions

Q. X, Y, and Z are three partners. On the retirement of X assets and liabilities are revalued as under provision for doubtful debts reduced by Rs.1250, stock in trade increased by Rs.550, Building in increased by rs 4500. The remaining partner decides to re-state the assets and liabilities at the old book value after the retirement of X.The revaluation would be given effect by ___________.

A and B are partners sharing profits in the ratio of 2:1. C is admitted as a new partner and the new ratio is decided as 5:3:2. The assets and liabilities are revalued as:

(i) Building was appreciated by 25% (Book value of Building Rs 4,00,000).

(ii)The provision for doubtful debts was reduced from Rs 5,000 to Rs 3,000.

(iii) A provision for Rs 4,000 was to be made for an outstanding bill for repairs.

(iv) Unrecorded investments were worth Rs 10,000

(v) Unrecorded liability towards suppliers was Rs 12,000

Pass the necessary journal entries.

Himanshu, Gagan and Naman are partners sharing profits and losses in the ratio of 3:2:1. On March 31, 2017, Naman retires.

The various assets and liabilities of the firm on the date were as follows:

Cash Rs 10,000, Building Rs 1,00,000, Plant and Machinery Rs 40,000, Stock Rs 20,000, Debtors Rs 20,000 and Investments Rs 30,000.

The following was agreed upon between the partners on Naman’s retirement:

(i)	Building to be appreciated by 20%.
(ii)	Plant and Machinery to be depreciated by 10%.
(iii)	A provision of 5% on debtors to be created for bad and doubtful debts.
(iv)	Stock was to be valued at Rs 18,000 and Investment at Rs 35,000.

Record the necessary journal entries to the above effect and prepare the Revaluation Account.

Q. At the time of admission of new partner

C

, the 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

R s . 50, 000

).
(b) Creditors were written back by

R s . 5000

.
(c) Building was appreciated by

20 %

(Book value of Building

R s . 2, 00, 000

).
(d) Unrecorded Investment were worth

R s . 15, 000

.
(e) A Provision of

R s . 2, 000

was made for an Outstanding Bill for repairs.
(f) Unrecorded Liability towards suppliers was

R s . 3, 000

.
Pass necessary Journal entries:

X

and

Y

share profits in the ratio of

5 : 3

. Their Balance Sheet as at

31^{s t}

March,2018 was:

Liabilities	(Rs.)	Assets	(Rs.)
Creditors Employees Provident Fund Workmen Compensation Reserve Capital A/cs: X 70,000 Y 31,000	15,000 10,000 5,800 1,01,000	Cash at Bank Sundry Debtors 20,000 Less: Provision for Doubtful Debts 600 Stock Fixed Assets Profit and Loss A/c	5,000 19,400 25,000 80,000 2,400
	1,31,800		1,31,800

They admit

Z

into partnership with

1 / 8^{t h}

share in profits on this date.

Z

brings

R s . 20, 000

as his capital.

R s . 12, 000

for goodwill in cash.

Z

acquires share entirely from

X

. Following revaluation are also made.
(a) Employees Provident Fund liability is to be increased by

R s . 5, 000

.
(b) All Debtors are good. Therefore, no provision is required on Debtors.
(c) Stock includes

R s . 3, 000

for obsolete items.
(d) Creditors are to be paid

R s . 1, 000

more.
(e) Fixed Assets are to be revalued at

R s . 70, 000

.
Prepare Journal entries, necessary account and new Balance Sheet. Also calculate new profit-sharing ratio.

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Particulars	Amount (Rs.)	PArticulars	Amount (Rs.)
To provision for doubtful debts A/c To profit on revalution A/c (Bal.Fig.)	1250 5350	By stock trade A/c By Building A/c	1500 5100
	6600		6600

On death of X, assets and liabilities are revalued as under : Provision for doubtful debt raised by Rs. 1250,stock in trade increased by Rs. 1500 taken on record, Building increased by Rs.5100.find the profit and loss on revalutations.

The correct option is A Rs.5350 ParticularsAmount (Rs.) PArticulars Amount (Rs.) To provision for doubtful debts A/cTo profit on revalution A/c (Bal.Fig.) 12505350 By stock trade A/cBy Building A/c1500 5100 6600 6600

The correct option is A Rs.5350
Particulars Amount (Rs.) PArticulars Amount (Rs.)
To provision for doubtful debts
A/c
To profit on revalution A/c (Bal.Fig.) 1250
5350 By stock trade A/c
By Building A/c 1500
5100
6600 6600