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4.8 Double Entry Book Keeping (Section A)—ISC XII

Revaluation A/c ...Dr. 2,700
To Stock A/c 1,000
To Provision for Doubtful Debts A/c 1,000
To Furniture A/c 400
To Provision for Outstanding Expenses A/c 300
(Being the decrease in assets and increase in liabilities)
Machinery A/c ...Dr. 3,000
To Revaluation A/c 3,000
(Being the increase in the value of machinery)
Revaluation A/c ...Dr. 300
To A’s Capital A/c 150
To B’s Capital A/c 100
To C’s Capital A/c 50
(Being the gain (profit) on revaluation divided in the old ratio)
Reserve A/c ...Dr. 30,000
To A’s Capital A/c 15,000
To B’s Capital A/c 10,000
To C’s Capital A/c 5,000
(Being the transfer of Reserve to the Partners’ Capital Accounts in the old ratio)
Profit and Loss Suspense A/c ...Dr. 18,000
To A’s Capital A/c 9,000
To B’s Capital A/c 6,000
To C’s Capital A/c 3,000
(Being the estimated profit till the date of retirement transferred
to the Capital Accounts in the old ratio)
Bank A/c ...Dr. 46,100
To A’s Capital A/c 16,430
To C’s Capital A/c 29,670
(Being the cash brought in by A and C as per agreement) (WN 3)
B’s Capital A/c ...Dr. 84,100
To Bank A/c 84,100
(Being the payment made to B on his retirement)

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)

To B’s Capital A/c (WN1) 2,400 ... 5,600 By Balance b/d 40,000 60,000 20,000
(Goodwill) By A’s Capital A/c (WN 1) ... 2,400 ...
To Bank A/c ... 84,100 ... By C’s Capital A/c (WN 1) ... 5,600 ...
(Balancing Figure) By Revaluation A/c 150 100 50
To Balance c/d 78,180 ... 52,120 By Reserve A/c 15,000 10,000 5,000
By Profit and Loss
Suspense A/c 9,000 6,000 3,000
By Bank A/c (WN 3) 16,430 ... 29,670
80,580 84,100 57,720 80,580 84,100 57,720