Angle and Circle were partners in a firm. Their Balance Sheet showed Furniture at ₹ 2,00,000; Stock at ₹ 1,40,000; Debtors at ₹ 1,62,000 and Creditors at ₹ 60,000. Square was admitted and new profit sharing ratio was agreed at 2 : 3 : 5. Stock was revalued at ₹ 1,00,000, Creditors of ₹ 15,000 are not likely to be claimed, Debtors for ₹ 2,000 have become irrecoverable and Provision for doubtful debts to be provided @ 10%. Angle’s share in loss on revaluation amount to ₹ 30,000. Revalued value of Furniture will be
Ans – d) Solution:- Revaluation loss = 30,000 × 2 = ₹ 60,000 Particulars ₹ Particulars ₹ To Furniture A/c (B/f) Stock A/c To Debtors A/c To Provision for doubtful Debts A/c 17,000 40,000 2,000 16,000 By Creditors A/c…