Page 106 - MA-12

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

Bank A/c ...Dr. 21,000
To Investment A/c 15,000
To Revaluation A/c 6,000
(Being the investment sold)
Patents A/c ...Dr. 70,000
Machinery A/c ...Dr. 19,000
Unexpired Insurance A/c ...Dr. 5,000
Trade Creditors A/c ...Dr. 1,100
To Revaluation A/c 95,100
(Being the increase in assets and decrease in liabilities recorded)
Revaluation A/c ...Dr. 26,100
To Stock A/c 20,000
To Provision for Outstanding Legal Charges A/c 5,000
To Provision for Doubtful Debts A/c 1,100
(Being the decrease in assets and increase in liabilities recorded)
Revaluation A/c ...Dr. 75,000
To Khanna’s Capital A/c 37,500
To Seth’s Capital A/c 22,500
To Mehta’s Capital A/c 15,000
(Being the transfer of gain (profit) on revaluation)
Mehta’s Capital A/c ...Dr. 5,000
To Loan to Mehta A/c 5,000
(Being the transfer of Loan to Mehta to his Capital Account)
Mehta’s Capital A/c ...Dr. 1,24,000
To Mehta’s Executor’s A/c 1,24,000
(Being the transfer of Mehta’s Capital Account to his Executor’s Account)
Mehta’s Executor’s A/c ...Dr. 24,000
To Bank A/c 24,000
(Being the partial payment made to Mehta’s Executor)

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Khanna Seth Mehta Particulars Khanna Seth Mehta
` ` ` ` ` `
To Bank A/c (Drawings) ... ... 25,000 By Balance b/d 3,37,500 2,37,500 1,85,000
To Goodwill A/c 12,500 7,500 5,000 By Revaluation A/c 37,500 22,500 15,000
To Profit and Loss A/c 1,87,500 1,12,500 75,000 By Khanna’s Capital A/c ... ... 21,875
To Mehta’s Capital A/c 21,875 13,125 ... By Seth’s Capital A/c ... ... 13,125
To Profit and Loss By Investment Fluctua-
Suspense A/c ... ... 5,000 tion Reserve A/c 8,750 5,250 3,500
To Loan to Mehta A/c ... ... 5,000 By Workmen Compen-
To Advertisment sation Reserve A/c 3,750 2,250 1,500
Expenditure A/c 2,500 1,500 1,000
To Mehta’s Executor’s A/c ... ... 1,24,000
To Balance c/d 1,63,125 1,32,875 ...
3,87,500 2,67,500 2,40,000 3,87,500 2,67,500 2,40,000