How will the following adjustment will be treated in case of admission of a partner :

1.All Debtors are good.
​2.That unaccounted accrued income of Rs 500 be provided for.
3. A Debtor whose dues of Rs 1000 were written off as Bad-debt paid Rs 800 in full settlement.
4..Outstanding Bill for repairs Rs1000 will be brought in the books.
5..Half of the Investmentwere to be taken over by A and B in their profit-sharing ratio at book value.
Pls explain the two-eefects that will be occur in Revaluation A/c , (Partners Capital Account if treated) and Balance Sheet of the above adjustment stating reasons for each.

Dear Student,

The treatment for the said adjustments is given below:

1. All debtors are good, that means, any provision created on debtors is to be removed. Therefore, 
  a. Provision for doubtful debts will appear on the credit side of Revaluation A/c.
  b. Debtors will be shown will full value on the Assets side of the Balance Sheet.

2. Accrued Income is an asset for the firm, therefore,
 a. It will appear on the credit side of the Revaluation A/c.
 b. On the Assets side of the Balance Sheet.

3. Bad-debts recovered will have the following two effects:
 a. credit side of Revaluation A/c as Bad-debts recovered
 b. Add the received amount to the Cash balance on the Assets side of the Balance Sheet. 

4. Outstanding Bill is an increase in liability, therefore,
 a. Debit side of Revaluation A/c as Outstanding bill
 b. Liabilities side of the Balance Sheet

5. Investments taken over by the partners will have the following two effects:
a. Debit side of Partner's Capital Account
b. No Investment will appear in the Balance Sheet

Hope this clarifies your doubt.
Keep posting and keep studying!!

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