Question

Zubeen and Suraj are parters in a firm. They admitted Nitin as a new partner for `1/3`rd share in profits which he acquired from Zubeen and Suraj in the ratio of 3 : 2. Following balances appeared in the books of the firm at the time of Nitin’s admission:

	₹
General Reserve	12,000
Sundry Debtors	75,000
Provision for Doubtful Debts	3,000

Additional Information:

1. All the debtors to be taken as good.
2. General Reserve not to be distributed.

Pass the necessary journal entries to record the above adjustments.

Answer 1

JOURNAL
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Provision for Doubtful Debts A/c   ...Dr.		3,000
	To Revaluation A/c			3,000
	(Provision for doubtful debts written back)
	Revaluation A/c  ...Dr.		3,000
	To Zubeen’s Capital A/c			1,500
	To Suraj’s Capital A/c			1,500
	(Gain on revaluation transferred to partners’ Capital Accounts)
	Nitin’s Current A/c (\[\frac{1}{3}\] of ₹12,000)   ...Dr.		4,000
	To Zubeen’s Capital A/c			2,400
	To Suraj’s Capital A/c			1,600
	(Adjustment made for General Reserve)