If the value of stock lies in the books is rs. 110000 it was found overvalued by 10% at the same time of admission of partner . draw the journal entry for the same in the book of firm.
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2
Answer:
Stock lies in books 10% overvalued it means it is 110% in books
value of stock. 110000/110*100= 100000
Realisation account. Dr 10000
To stock account. 10000
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0
Answer:
Rectification entry will be passed at the time of admission.
We are assuming that Revaluation a/c is opened.
The entry will be-
Revaluation A/c Dr. 10000
To Stock A/c 10000
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