The partners of ABC
Partnership share profits and losses in the ratio A: 50% B 25% and C 25%. On 1
January 2022, C withdraws from the partnership and a new partner D is admitted
to the partnership. A, B and D agree to share profits and losses in the ratio
A: 40% B 30% and D 30%. The value of the assets of the partnership as shown in
the Balance sheet as at 1 January 2022 are: Fixed Assets = $63,000, Inventory =
$12,000 and Accounts Receivable = $19,000. The Fixed Assets were revalued at
$56,000. Inventory was revalued at $10,000. An amount of $6,000 was written off
from Accounts Receivable as bad debts. The journal entries to record the revaluation
of the assets are:

Question

Answer

Debit Fixed Assets                           7,000

Debit Accounts Receivable           13,000

Debit Inventory                               2,000

Credit Revaluation Account         22,000

Debit Revaluation Account          22,000

Credit Capital Account A                 11,000

Credit Capital Account B               5,500

Credit Capital Account D               5,500

Answer

Debit Revaluation Account          22,000

Credit Fixed Assets                         7,000

Credit Accounts Receivable          13,000

Credit Inventory                              2,000

Debit Capital Account A                  11,000

Debit Capital Account B                5,500

Debit Capital Account C                5,500

Credit Revaluation Account          22,000

Answer

Debit Fixed Assets                           7,000

Debit Accounts Receivable           13,000

Debit Inventory                               2,000

Credit Revaluation Account         22,000

Debit Revaluation Account          22,000

Credit Current Account A               11,000

Credit Current Account B              5,,500

Credit Current Account C              5,500

Answer

Debit Revaluation Account          22,000

Credit Fixed Assets                         7,000

Credit Accounts Receivable          13,000

Credit Inventory                              2,000

Debit Current Account A                 11,000

Debit Current Account B               5,500

Debit Current Account C               5,500

Credit Revaluation Account         22,000

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The partners of ABC Partnership share profits and losses in the ratio A: 50% B ...

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