Question

Q.1 Rohit and Bal sharing profits in the ratio of 5:3 had the following balance sheet as on December
31, 2018 :
Liabilities
Amt. Rs
Assets
Amt. (Rs)
Creditors
20,000 Goodwill
30,000
Bill payable
8,000 Building
34,000
General Reserve
28,000 Plant
27,000
Capital Accounts:
Furniture
4,000
Rohit
80,000 Debtors
32,000
Bal
40,000 Bills Receivable
15,000
Stock
22,000
Bank
11,000
1,76,000
1,76,000
On January 1", 2019 they deceided to admit suraj into the partnership giving him 1/5" share. He
brings in Rs 50,000 as his share of capital. The partner decided to revalue the assets as follows:
goodwill Rs 50,000, plant Rs 25,000, Debtors Rs 31,000, stock Rs 32,500, Building Rs 40,000,
Furniture Rs 2,000, Bills Receivable Rs 12,500. Revaluation expenses Rs Rs 2,000 paid by the firm.
You are required to prepare the Revaluation Account

Answer 1

Explanation:

first , we have to find new ratio and sacrifice ratio... Then prepare a revaluation account..if asset are increase then will be cr. and if decrease then will be Dr.