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Question
Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3:2:1 respectively. Angad retires and his claim, including his Capital and entitlements from the firm including his share of Goodwill of the firm, is Rs. 50,000. After this amount was determined, it was found that there was an unrecorded piece of furniture valued at Rs.12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash. You are required to give the journal entries for recording the payment to Angad in the books of the firm.
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Solution
| Date | Particular | L.F. | Amount | Amount |
|
Furniture A/c ........Dr To Revaluation A/c (Being furniture rewarded in book) |
12,000
|
12,000
|
||
|
Revaluation A/c.. ......Dr To Parth’s Capital A/c To Angad’s Capital A/c To Lessha’s Capital A/c (Being transfer of profit on revaluation) |
12,000
|
6,000
4,000 2,000
|
||
|
Angad’s Capital A/c .... Dr To Furniture A/c To Cash A/c (Being Angad’s Claim Discharged) |
54,000
|
12,000 42,000 |
