On C's admission, Machinery appeared in the books of the firm at 1,80,000 a furniture at 1,00,000 on revaluation, it was found that machinery is overvalued by 20% Net loss on revaluation is 40,000. What will be the reevalued value of furniture by
a) 24, 000 B) 90,000
c) 30,000 d) 50,000
Answers
Answer:
Explanation:
You are required to prepare the Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm after considering the following:
(a) C brings ₹ 30,000 as capital for 1/4th share. He also brings ₹ 10,000 for his share of goodwill.
(b) Part of the Stock which had been included at cost of ₹ 2,000 had been badly damaged in storage and could only expect to realise ₹ 400.
(c) Bank charges had been overlooked and amounted to ₹ 200 for the year 2018-19.
(d) Depreciation on Building of ₹ 3,000 had been omitted for the year 2018-19.
(e) A credit for goods for ₹ 800 had been omitted from both purchases and creditors although the goods had been correctly included in Stock.
(f) An expense of ₹ 1,200 for insurance premium was debited in the Profit and Loss Account of 2018-19 but ₹ 600 of this are related to the period after 31st March, 2019.
ANSWER:
Revaluation Account
Dr.