(a) Vivek, Vishal, and Vimal are partners in a firm sharing Profits and Losses equally. Their Balance Sheet as on 31st March, 2018 is as follows : | Liabilities | ₹ | ₹ | Assets | ₹ | ₹ | | --- | --- | --- | --- | --- | --- | | Capital accounts | | | Furniture | | 60,000 | | Vivek | 60,000 | | Machinery | | 1,20,000 | | Vishal | 70,000 | | Sundry debtors | 33,000 | | | Vimal | 70,000 | 2,00,000 | Less : Provision for doubtful debts | 3,000 | 30,000 | | Bills Payable | | 80,000 | Bills Receivable | | 50,000 | | | | | Cash at Bank | | 20,000 | | | | 2,80,000 | | | 2,80,000 | Vimal retired on 31st March, 2019 subject to the following conditions : (i) Machinery is valued at ₹ 1,50,000. (ii) Value of furniture brought down by ₹ 10,000. (iii) Provision for Doubtful debts should be increased to ₹ 5,000. (iv) Investment of ₹ 30,000 not recorded in the books is to be recorded now. Pass necessary journal entries and prepare Revaluation account. OR (b) Poornima Ltd. issued 1,00,000 ordinary shares of ₹ 10 each, payable at ₹ 2 on application, ₹ 4 on allotment, ₹ 2 on First call and ₹ 2 on Final call. All the shares are subscribed and amount was duly received. Pass journal entries.

> > [!TLDR] > (a) Revaluation net profit ₹48,000 (gains 60,000 − losses 12,000), shared equally ₹16,000 each. (b) Issue of 1,00,000 shares of ₹10 — journal entries; capital ₹10,00,000. > > **(a) Retirement of Vimal — Vivek, Vishal, Vimal (equal) — TN HSC Class-12 Accountancy** > > Revaluation items: Machinery 1,20,000 → 1,50,000 (gain 30,000); Furniture down by 10,000 (loss 10,000); Provision for doubtful debts 3,000 → 5,000 (loss 2,000); Investment ₹30,000 unrecorded now recorded (gain 30,000). > > **Journal Entries:** > > | Particulars | Dr (₹) | Cr (₹) | > | --- | --- | --- | > | Machinery A/c Dr | 30,000 | | > | To Revaluation A/c | | 30,000 | > | Investment A/c Dr | 30,000 | | > | To Revaluation A/c | | 30,000 | > | Revaluation A/c Dr | 10,000 | | > | To Furniture A/c | | 10,000 | > | Revaluation A/c Dr | 2,000 | | > | To Provision for Doubtful Debts A/c | | 2,000 | > | Revaluation A/c Dr | 48,000 | | > | To Vivek's Capital A/c | | 16,000 | > | To Vishal's Capital A/c | | 16,000 | > | To Vimal's Capital A/c | | 16,000 | > > **Revaluation Account** > > | Dr. Particulars | ₹ | Cr. Particulars | ₹ | > | --- | --- | --- | --- | > | To Furniture A/c | 10,000 | By Machinery A/c | 30,000 | > | To Provision for doubtful debts A/c | 2,000 | By Investment A/c | 30,000 | > | To Profit transferred to: | | | | > | Vivek 16,000 | | | | > | Vishal 16,000 | | | | > | Vimal 16,000 | 48,000 | | | > | **Total** | **60,000** | **Total** | **60,000** | > > Net revaluation profit = 60,000 − 12,000 = ₹48,000; shared equally = ₹16,000 each. > > **(b) Issue of shares — Poornima Ltd (1,00,000 shares of ₹10 each) — Company Accounts** > > Amounts: Application ₹2, Allotment ₹4, First call ₹2, Final call ₹2 (per share) → ₹2,00,000 / ₹4,00,000 / ₹2,00,000 / ₹2,00,000. > > **Journal Entries:** > > | Particulars | Dr (₹) | Cr (₹) | > | --- | --- | --- | > | Bank A/c Dr | 2,00,000 | | > | To Share Application A/c | | 2,00,000 | …

(a) Vivek, Vishal, and Vimal are partners in a firm sharing Profits and Losses equally. Their Balance Sheet as

Question 35 of 35

(a) Vivek, Vishal, and Vimal are partners in a firm sharing Profits and Losses equally. Their Balance Sheet as on 31st March, 2018 is as follows :

Liabilities	₹	₹	Assets	₹	₹
Capital accounts			Furniture		60,000
Vivek	60,000		Machinery		1,20,000
Vishal	70,000		Sundry debtors	33,000
Vimal	70,000	2,00,000	Less : Provision for doubtful debts	3,000	30,000
Bills Payable		80,000	Bills Receivable		50,000
			Cash at Bank		20,000
		2,80,000			2,80,000

Vimal retired on 31st March, 2019 subject to the following conditions :

Machinery is valued at ₹ 1,50,000.
Value of furniture brought down by ₹ 10,000.
Provision for Doubtful debts should be increased to ₹ 5,000.
Investment of ₹ 30,000 not recorded in the books is to be recorded now. Pass necessary journal entries and prepare Revaluation account. OR

(b) Poornima Ltd. issued 1,00,000 ordinary shares of ₹ 10 each, payable at ₹ 2 on application, ₹ 4 on allotment, ₹ 2 on First call and ₹ 2 on Final call. All the shares are subscribed and amount was duly received. Pass journal entries.

Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2026Subjective· 5mImportance★★★★★

100% · 35/35 Questions

🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

(a) Revaluation net profit ₹48,000 (gains 60,000 − losses 12,000), shared equally ₹16,000 each. (b) Issue of 1,00,000 shares of ₹10 — journal entries; capital ₹10,00,000.

(a) Retirement of Vimal — Vivek, Vishal, Vimal (equal) — TN HSC Class-12 Accountancy

Revaluation items: Machinery 1,20,000 → 1,50,000 (gain 30,000); Furniture down by 10,000 (loss 10,000); Provision for doubtful debts 3,000 → 5,000 (loss 2,000); Investment ₹30,000 unrecorded now recorded (gain 30,000).

Journal Entries:

Particulars	Dr (₹)	Cr (₹)
Machinery A/c Dr	30,000
To Revaluation A/c		30,000
Investment A/c Dr	30,000
To Revaluation A/c		30,000
Revaluation A/c Dr	10,000
To Furniture A/c		10,000
Revaluation A/c Dr	2,000
To Provision for Doubtful Debts A/c		2,000
Revaluation A/c Dr	48,000
To Vivek's Capital A/c		16,000
To Vishal's Capital A/c		16,000
To Vimal's Capital A/c		16,000

Revaluation Account

Dr. Particulars	₹	Cr. Particulars	₹
To Furniture A/c	10,000	By Machinery A/c	30,000
To Provision for doubtful debts A/c	2,000	By Investment A/c	30,000
To Profit transferred to:
Vivek 16,000
Vishal 16,000
Vimal 16,000	48,000
Total	60,000	Total	60,000

Net revaluation profit = 60,000 − 12,000 = ₹48,000; shared equally = ₹16,000 each.

(b) Issue of shares — Poornima Ltd (1,00,000 shares of ₹10 each) — Company Accounts

Amounts: Application ₹2, Allotment ₹4, First call ₹2, Final call ₹2 (per share) → ₹2,00,000 / ₹4,00,000 / ₹2,00,000 / ₹2,00,000.

Journal Entries:

Particulars	Dr (₹)	Cr (₹)
Bank A/c Dr	2,00,000
To Share Application A/c		2,00,000

Start your 14-day free trial to unlock the full solution →

←Previous questionQ24 — Kavin, Madhan and Ranjith are partners sharing profits and losses in t…→Next questionQ1 — Distinguish between retirement of a partner and death of a partner.

🎓Unlock everything free for 14 days

Unlock everything free for 14 days