(a) Sriram and Raj are partners sharing profits and losses in the ratio of 2 : 1. Nelson joins as a partner on 1st April, 2017. The following adjustments are to be made : (i) Increase the value of stock by ₹ 5,000. (ii) Bring into record investment of ₹ 7,000 which had not been recorded in the books of the firm. (iii) Reduce the value of office equipment by ₹ 10,000. (iv) A provision would also be made for outstanding wages for ₹ 9,500. Give journal entries and prepare revaluation account. OR (b) From the following particulars, calculate total sales. | Particulars | ₹ | Particulars | ₹ | | --- | --- | --- | --- | | Debtors on 1st April 2018 | 2,50,000 | Bills receivable dishonoured | 15,000 | | Bills receivable on 1st April 2018 | 60,000 | Returns inward | 50,000 | | Cash received from debtors | 7,25,000 | Bills receivable on 31st March 2019 | 90,000 | | Cash received for bills receivable | 1,60,000 | Sundry debtors on 31st March 2019 | 2,40,000 | | Bad debts | 30,000 | Cash sales | 3,15,000 |

> > [!TLDR] > (a) Gains ₹12,000 (stock ₹5,000 + investment ₹7,000) vs losses ₹19,500 (equipment ₹10,000 + o/s wages ₹9,500) → **revaluation loss ₹7,500**, shared 2:1. (b) B/R received ₹2,05,000; credit sales ₹9,85,000; **total sales ₹13,00,000**. > > ## (a) Revaluation on admission of Nelson (Sriram : Raj = 2 : 1) > > **Journal Entries** > > | Date | Particulars | L.F. | Dr (₹) | Cr (₹) | > | --- | --- | --- | ---: | ---: | > | 1 | Stock A/c ..... Dr | | 5,000 | | > | | Investment A/c ..... Dr | | 7,000 | | > | | To Revaluation A/c | | | 12,000 | > | | *(Increase in stock and unrecorded investment brought in)* | | | | > | 2 | Revaluation A/c ..... Dr | | 19,500 | | > | | To Office Equipment A/c | | | 10,000 | > | | To Outstanding Wages A/c | | | 9,500 | > | | *(Decrease in office equipment and provision for outstanding wages)* | | | | > | 3 | Sriram's Capital A/c ..... Dr | | 5,000 | | > | | Raj's Capital A/c ..... Dr | | 2,500 | | > | | To Revaluation A/c | | | 7,500 | > | | *(Revaluation loss shared by old partners in 2:1)* | | | | > > **Revaluation Account** > > | Dr | ₹ | Cr | ₹ | > | --- | ---: | --- | ---: | > | To Office Equipment A/c | 10,000 | By Stock A/c | 5,000 | > | To Outstanding Wages A/c | 9,500 | By Investment A/c | 7,000 | > | | | By Loss transferred to: | | > | | | Sriram's Capital A/c (2/3) | 5,000 | > | | | Raj's Capital A/c (1/3) | 2,500 | > | | **19,500** | | **19,500** | > > Net revaluation loss = 19,500 − 12,000 = **₹7,500**, borne Sriram ₹5,000 and Raj ₹2,500. > > ## OR (b) Calculation of Total Sales > > **Step 1 — Bills received during the year (Bills Receivable Account)** > > | Dr | ₹ | Cr | ₹ | > | --- | ---: | --- | ---: | > | To Balance b/d | 60,000 | By Cash (received for B/R) | 1,60,000 | > | To Sundry debtors (B/R received — bal. fig.) | 2,05,000 | By Sundry debtors (B/R dishonoured) | 15,000 | > | | | By Balance c/d | 90,000 | > | | **2,65,000** | | **2,65,000** | > > Bills receivable received from debtors = *

(a) Sriram and Raj are partners sharing profits and losses in the ratio of 2 : 1. Nelson joins as a partner on

Question 24 of 40

Sriram and Raj are partners sharing profits and losses in the ratio of 2 : 1. Nelson joins as a partner on 1st April, 2017. The following adjustments are to be made :
1. Increase the value of stock by ₹ 5,000.
2. Bring into record investment of ₹ 7,000 which had not been recorded in the books of the firm.
3. Reduce the value of office equipment by ₹ 10,000.
4. A provision would also be made for outstanding wages for ₹ 9,500. Give journal entries and prepare revaluation account. OR
From the following particulars, calculate total sales.

Particulars	₹	Particulars	₹
Debtors on 1st April 2018	2,50,000	Bills receivable dishonoured	15,000
Bills receivable on 1st April 2018	60,000	Returns inward	50,000
Cash received from debtors	7,25,000	Bills receivable on 31st March 2019	90,000
Cash received for bills receivable	1,60,000	Sundry debtors on 31st March 2019	2,40,000
Bad debts	30,000	Cash sales	3,15,000

Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2022Subjective· 5mImportance★★★★★

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(a) Gains ₹12,000 (stock ₹5,000 + investment ₹7,000) vs losses ₹19,500 (equipment ₹10,000 + o/s wages ₹9,500) → revaluation loss ₹7,500, shared 2:1. (b) B/R received ₹2,05,000; credit sales ₹9,85,000; total sales ₹13,00,000.

(a) Revaluation on admission of Nelson (Sriram : Raj = 2 : 1)

Journal Entries

Date	Particulars	Dr (₹)	Cr (₹)
1	Stock A/c ..... Dr	5,000
	Investment A/c ..... Dr	7,000
	To Revaluation A/c		12,000
	(Increase in stock and unrecorded investment brought in)
2	Revaluation A/c ..... Dr	19,500
	To Office Equipment A/c		10,000
	To Outstanding Wages A/c		9,500
	(Decrease in office equipment and provision for outstanding wages)
3	Sriram's Capital A/c ..... Dr	5,000
	Raj's Capital A/c ..... Dr	2,500
	To Revaluation A/c		7,500
	(Revaluation loss shared by old partners in 2:1)

Revaluation Account

Dr	₹	Cr	₹
To Office Equipment A/c	10,000	By Stock A/c	5,000
To Outstanding Wages A/c	9,500	By Investment A/c	7,000
		By Loss transferred to:
		Sriram's Capital A/c (2/3)	5,000
		Raj's Capital A/c (1/3)	2,500
	19,500		19,500

Net revaluation loss = 19,500 − 12,000 = ₹7,500, borne Sriram ₹5,000 and Raj ₹2,500.

OR (b) Calculation of Total Sales

Step 1 — Bills received during the year (Bills Receivable Account)

Dr	₹	Cr	₹
To Balance b/d	60,000	By Cash (received for B/R)	1,60,000
To Sundry debtors (B/R received — bal. fig.)	2,05,000	By Sundry debtors (B/R dishonoured)	15,000
		By Balance c/d	90,000
	2,65,000		2,65,000

Bills receivable received from debtors = ₹2,05,000.

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(a) Revaluation on admission of Nelson (Sriram : Raj = 2 : 1)

OR (b) Calculation of Total Sales

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