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Model Test Papers M.71

Date Particulars L.F. Dr. (`) Cr. (`)
Revaluation A/c ...Dr. 24,375
To Provision for Doubtful Debts A/c 975
To Stock A/c 6,000
To Furniture A/c 1,500
To Machinery A/c 9,600
To Sundry Creditors A/c 6,300
(Being the decrease in value of assets and increase in amount of
liabilities recorded)

Working Note:
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Provision for Doubtful Debts A/c 975 By Investments A/c 7,500
To Stock A/c 6,000 By Loss transferred to:
To Furniture A/c 1,500 A’s Capital A/c 11,813
To Machinery A/c 9,600 B’s Capital A/c 5,062 16,875
To Sundry Creditors A/c 6,300
24,375 24,375
Or
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
General Reserve A/c ...Dr. 90,000
To X’s Capital A/c 18,000
To Y’s Capital A/c 27,000
To Z’s Capital A/c 45,000
(Being the Geneal Reserve distributed among partners)
X’s Capital A/c ...Dr. 15,000
Y’s Capital A/c ...Dr. 22,500
Z’s Capital A/c ...Dr. 37,500
To Profit and Loss A/c 75,000
(Being the accumulated losses divided among partners)
Bad Debts A/c ...Dr. 6,000
To Debtors A/c 6,000
(Being the debtors of ` 6,000 written off)
Provision for Doubtful Debts A/c ...Dr. 6,000
To Bad Debts A/c 6,000
(Being the provision utilised for writing off bad debts)
Provision for Doubtful Debts A/c ...Dr. 2,550
To Revaluation A/c 2,550
(Being the excess provision credited to Revaluation A/c)
Revaluation A/c ...Dr. 1,35,000
To Patents A/c 90,000
To Stock A/c 7,500
To Machinery A/c 22,500
To Building A/c 15,000
(Being the decrease in the value of assets recorded)