Page 321 - MA-12

M.12 Management Accounting (Section B)—ISC XII

ADJUSTMENT JOURNAL ENTRY
Date Particulars L.F. Dr. Cr.
` `
Siya’s Capital A/c (` 1,65,000 × ` 2/10) ...Dr. 33,000
Miya’s Capital A/c (` 1,65,000 × ` 1/10) ...Dr. 16,500
To Priya’s Capital A/c (` 1,65,000 × ` 3/10) 49,500
(Being the adjustment made for net accumulated
profits , losses and reserves)

(b) JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2019
March 31 General Reserve A/c ...Dr. 30,000
To Rose’s Capital A/c 15,000
To Daisy’s Capital A/c 9,000
To Lily’s Capital A/c 6,000
(Being the General Reserve distributed among partners)
Rose’s Capital A/c ...Dr. 12,500
Daisy’s Capital A/c ...Dr. 7,500
Lily’s Capital A/c ...Dr. 5,000
To Profit and Loss A/c 25,000
(Being the accumulated losses divided among partners)
Bad Debts A/c ...Dr. 2,000
To Debtors A/c 2,000
(Being the debtors of ` 2,000 written off)

Provision for Doubtful Debts A/c ...Dr. 2,000
To Bad Debts A/c 2,000
(Being the bad debts met from provision for bad and doubtful debts)
Provision for Doubtful Debts A/c ...Dr. 850
To Revaluation A/c (WN 1) 850
(Being the excess provision for bad and doubtful debts transferred to
Revaluation Account)
Revaluation A/c ...Dr. 45,000
To Patents A/c 30,000
To Stock A/c 2,500
To Machinery A/c 7,500
To Building A/c 5,000
(Being the decrease in value of assets recorded)
Revaluation A/c ...Dr. 10,000
To Creditors A/c 10,000
(Being the unrecorded creditors recorded)