[ISC] Q. 48 Solution of Admission of Partner TS Grewal Accounts Class 12 (2023-24)

Solution to Question number 48 of the Admission of partner chapter 3 of TS Grewal Book 2023-24 Edition ISC/CISCE Board?

At the time of admission of partner Dass, the assets and liabilities of Karam and Dharam were revalued and following changes were made:

(i) Provision for Doubtful Debts @ 10% was made on Sundry Debtors (Sundry Debtors ₹ 50,000).

(ii) Creditors were written back ₹ 5,000.

(iii) Building was appreciated by 20% (Book Value of Building ₹ 2,00,000).

(iv) Unrecorded investments were of ₹ 15,000.

(v) A liability of ₹ 2,000 was provided for an outstanding bill for repairs.

(vi) Unrecorded Liability towards suppliers was ₹ 3,000.

Pass necessary journal entries and prepare Revaluation Account of the firm after Dass’s admission.

Solution:-