What is the journal entry, effect in Revaluation Account, Partner's Capital Account and Balance Sheet in each of these cases: - Accountancy - Reconstitution- Admission of a Partner

Question

What is the journal entry, effect in Revaluation Account, Partner's
Capital Account and Balance Sheet in each of these cases: i) A
liability of Rs 1,080 be created against bills discounted ii) A
bills of exchange of Rs 10,000 which was previously discounted with
the banker was dishonoured but no entry has been passed for
dishonour iii) A bills receivable of Rs 14,008 discounted with the
bank was dishonoured, which is to be recorded in the books of
accounts

Neha Arora · Accepted Answer

Dear
Student,

The impact of the each transaction is explained below

â€‹i) A liability of Rs
1,080 be created against bills discounted

(a) Debit Revaluation A/c
with Rs 1,080
(b) Show 'Liability against bills Discounted' as Rs 1,080 on the
Liabilities side of the New Balance Sheet

Journal entry will be as follows

Journal

Date
Particulars
L
F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Revaluation
A/c
Dr

1,080

To Liability against
Bill Discounted

1,080

(Liability against
bill discounted debited to Revaluation
A/c)

ii) A bills of exchange of Rs 10,000
which was previously discounted with the banker was dishonoured but
no entry has been passed for dishonour

(a) Increase 'Debtors' with Rs 10,000 on
the 'Assets side' of the New Balance Sheet
(b) Decrease 'Bank'
with Rs 10,000 on the 'Assets
side' of the New
Balance Sheet

Journal
entry will be as follows

Journal

Date
Particulars
L F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Debtors A/c
Dr

10,000

To Bank A/c

10,000

(Bill discounted with bank
dishonoured)

iii) A bills receivable of Rs 14,008
discounted with the bank was dishonoured, which is to be recorded
in the books of accounts

(a) Increase 'Debtors' with
Rs 14,008 on the 'Assets side' of the New Balance Sheet
(b) Decrease 'Bank' with Rs
14,008 on the 'Assets side' of the New Balance Sheet

Journal entry will be as follows

Journal

Date
Particulars
L
F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Debtors
A/c
Dr

14,008

To Bank
A/c

14,008

(Bill
discounted with bank dishonoured)

â€‹

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)


	Revaluation A/c	Dr.		1,080
	To Liability against Bill Discounted				1,080
	(Liability against bill discounted debited to Revaluation A/c)

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)


	Debtors A/c	Dr.		10,000
	To Bank A/c				10,000
	(Bill discounted with bank dishonoured)

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)


	Debtors A/c	Dr.		14,008
	To Bank A/c				14,008
	(Bill discounted with bank dishonoured)