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5.8 Double Entry Book Keeping—CBSE XII
(iii) Value of furniture is to be brought up to 120% of its value (Book value of furniture is
` 20,000).
(iv) Stock is found undervalued by ` 4,000 (Book value of stock is ` 25,000).
(v) Stock is found overvalued by ` 5,000 (Book value of stock is ` 30,000).
(vi) A debtor whose dues of ` 10,000 were written off as bad debts last year, paid ` 6,000
in full settlement.
(vii) Rent of ` 5,000 is outstanding.
(viii) A bill of ` 2,000 for electricity charges has been omitted to be accounted.
(ix) Half of Machinery is taken by Y for ` 40,000 and balance is revalued at ` 37,000 (Book
value of machinery is ` 80,000).
(x) Machinery is taken by Y for ` 70,000 (Book value of machinery is ` 65,000).
(xi) Out of the amount of insurance premium which was debited to Profit and Loss
Account, ` 5,000 is to be carried forward to next year.
or
Insurance premium amounting to ` 15,000 was debited to Profit and Loss Account of
which ` 5,000 is related to next year.
(xii) There is a claim for damages against the firm for which a provision of ` 15,000 is to
be made.
(xiii) There is a liability of ` 10,000 included in creditors, that is not likely to arise.
(xiv) An unrecorded accrued income of ` 12,000 is to be accounted.
Solution: JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
(i) Furniture A/c ...Dr. 10,000
To Revaluation A/c 10,000
(Increase in the value of furniture recorded)
(ii) Furniture A/c ...Dr. 10,000
To Revaluation A/c 10,000
(Increase in the value of furniture recorded)
(iii) Furniture A/c ...Dr. 4,000
To Revaluation A/c 4,000
(Increase in the value of furniture recorded)
(iv) Stock A/c ...Dr. 4,000
To Revaluation A/c 4,000
(Increase in the value of stock recorded)
(v) Revaluation A/c ...Dr. 5,000
To Stock A/c 5,000
(Decrease in the value of stock recorded)
(vi) (a) Cash/Bank A/c ...Dr. 6,000
To Bad Debts Recovered A/c 6,000
(Bad debts recovered)
(b) Bad Debts Recovered A/c ...Dr. 6,000
To Revaluation A/c 6,000
(Gain due to bad debts recovered recorded)