Questions 4,5,6 & 7

Items 4 - 5 refer to the following information Hook. Line and Sinker were in partnership sharing profits and losses in the ratio 3:2:1. The balances on their capital accounts were as follows: 10000 Hook Line 18000 Sinket 6 000 On January! Stone was admitted to the partnership paying in 510 000 in cash. The profit sharing ratio after the admission of Stone was 22:1:1. It was estimated that the business could be sold for S12 000 more than the book value of the assets. What double entry is to be recorded for the S12000? A. Debit the realization account Credit the bank account B. Debit the revaluation Account Credit the capital account C. Debit the realization account Credit the capital account D. Debit the capital account Credit the revaluation account What double entry will you use to record the S10 000 paid on the admission of Stone? A. Debit the capital account Credit the realization account B. Debit the current account Credit the cash account C. Debit cash account Credit capital account D. Debit goodwill account Credit current account 6. The partnership of Alfred and Paul decided to admit David. At the time inventory on the balance sheet was $40 000 though 55 000 of this was rendered obsolete and had a nil value. What is the double entry to record this transaction? A. Debit Revaluation A/c 55 000, Credit Inventory Ac SS 000 B. Credit Revaluation Ac 55 000, Debit Inventory A/c SS 000 C. Debit Partners' Capital A/c 535 000, Credit Revaluation A/c 535 000 D. Debit Revaluation Nc 55 000, Credit Partners' Capital Alc SS 000 7. The CORRECT entry for recording losses on revaluation would be Debit Credit A. revaluation partners' capital accounts B. partners current accounts revaluation c. partners' capital accounts revaluation D. revaluation partners current accounts