Question

Pass entries in firm's Journal for the following on admission of a partner:
(i) Unrecorded Investments worth ₹ 20,000.
(ii) Unrecorded liability towards suppliers for ₹ 5,000.
(iii) An item of ₹ 1,600 included in Sundry Creditors is not likely to be claimed and hence should be written back.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Investment A/c	Dr.		20,000
	To Revaluation A/c				20,000
	(Investments recorded)
(ii)	Revaluation A/c	Dr.		5,000
	To Creditors A/c				5,000
	(Liability recorded)
(iii)	Creditors A/c
	To Revaluation A/c	Dr		1,600
	(Liability decreased)				1,600