At the time of admission of a partner C assets and liabilities of A and B were revalued as follws:
(a) A Provision for Doubtful Debts @10% was made on Sandru Debtors (Sundry Debtors RS.50,000).
(b) Creditors were written back by RS.5,000.
(c) Building was apreciated by 20% (Book value of Building RS.2,00,000).
(d) Unrecorded Investements were valued at RS.15,000.
(e) A Provision of RS.2,000 was made for an Outstanding Bill for repairs:
(f) Unressary Liability towards suppilers was RS.3,000.
Pass necessary Journal entries.

Explanation

(i) Dr. Revaluation A/c-RS.10,000, Cr. Provision for Doubful Debts-RS.5,000: Provision for Outstanding Repairs Bill A/c-RS.2,000 and Creditors A/c-RS.3,000.
(ii) Dr. Creditors A/c-RS.5,000, Building A/c-RS.40,000 and Investment A/c-RS.15,000, Cr. Revaluation A/c-RS.60,000.
(iii) Dr. Revaluation A/c-RS.50,000 (Gain (Profit) on Revalaution), Cr. A's Capital A/c-RS.25,000 and B's Capital A/c-RS.25,000.