Question

Raman and laxmanan were partners sharing profits and losses in the ratio of 4:3. In view

of velan’s admission, they decided to revalue their assets and liabilities as indicated

below:

a. To increase the value of buildings by Rs.60,000.

b. Provision for doubtful debts to be decreased by Rs.800.

c. To decrease Machinery by Rs.16,000, Furniture by Rs.4,000 and Stock by Rs.12,000.

d. A provision of outstanding liabilities was to be created for Rs.800.

Pass journal entries and show the Revaluation account​

Answer 1

Answer:i think the answer is :A

Explanation: Raman and laxman were partners

and profit and lost is 4:3 in ratio so increase in value for buildings will not let him into loss