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Pass Entries in Firm'S Journal for the Following on Admission of a Partner - Accountancy

Journal Entry

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.

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Solution

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

Concept: Admission of a New Partner
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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 5 Admission of a Partner
Exercise | Q 52 | Page 92
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