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
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
a) ₹ 2,17,000
b) ₹ 1,03,000
c) ₹ 3,03,000
d) ₹ 1,83,000
Anurag Pathak Changed status to publish June 1, 2023
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
By Revaluation Loss Transferred to Angle Circle |
15,000
30,000 30,000 |
| 75,000 | 75,000 |
Revalued Value of Furniture = ₹ 2,00,000 – ₹ 17,000 = ₹ 1,83,000
Anurag Pathak Changed status to publish June 1, 2023
