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6.20 Double Entry Book Keeping—CBSE XII
Solution:
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Provision for Doubtful Debts A/c 4,000 By Building A/c 70,000
To Gain (Profit) transferred to:
A’s Capital A/c 33,000
B’s Capital A/c 22,000
C’s Capital A/c 11,000 66,000
70,000 70,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To B’s Capital A/c (Note) 45,000 ... 15,000 By Balance b/d 1,50,000 1,00,000 1,00,000
To Profit and Loss A/c 6,000 4,000 2,000 By Revaluation A/c 33,000 22,000 11,000
To Cash A/c ... 30,000 ... — Gain (Profit)
To B’s Loan A/c ... 1,48,000 ... By A’s Capital A/c (Note) ... 45,000 ...
To Balance c/d 1,32,000 ... 94,000 By C’s Capital A/c (Note) ... 15,000 ...
1,83,000 1,82,000 1,11,000 1,83,000 1,82,000 1,11,000

Dr. CASH ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 47,000 By B’s Capital A/c 30,000
By Balance c/d 17,000
47,000 47,000

BALANCE SHEET OF A AND C as at 1st April, 2018
Liabilities ` Assets `
Creditors 1,35,900 Cash 17,000
B’s Loan A/c 1,48,000 Stock 1,16,900
Capital A/cs: Debtors 80,000
A 1,32,000 Less: Provision for Doubtful Debts 4,000 76,000
C 94,000 2,26,000 Building 3,00,000
5,09,900 5,09,900
Note: B’s share of goodwill ` 60,000 (i.e., ` 1,80,000 × 1/3) has been debited to Capital Accounts of A and C in
their gaining ratio, i.e., 3 : 1 and credited to B’s Capital Account.
Illustration 19.
Complete the following Accounts and Balance Sheet:
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Provision for Doubtful Debts A/c 5,000 By Computer A/c 12,000
To Warranty Claim A/c ? By Land and Building A/c 50,000
To Provision for Outstanding Repairs A/c 15,000
To Gain (Profit) transferred to:
A’s Capital A/c ?
B’s Capital A/c ?
C’s Capital A/c ? ?
62,000 62,000