Question 19 Chapter 4 of +2-Part-1
19. (Revaluation entries) X and Y share profits in 6:7 ratio. The future ratio will be 4:3 from 1st April 2018. They have decided to make a revaluation of assets and liabilities by passing revaluation entries before bringing into force the new ratio.
The following is the position of assets on 1st April 2018 with their revised values
| Book Value | Revised Value | |
| Building | 50,000 | 55,200 |
| Machinery | 25,000 | 22,400 |
| Creditors | 28,000 | 29,300 |
| Stock | 29,000 | 32,900 |
The Content covered in this article:
The solution of Question 19 Chapter 4 of +2 Part-1: –
(i) If there is no other information.
| In the Books of _______________ | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| (i) | Building a/c (Increase: Rs.55,200-50,000) | Dr. | 5,200 | ||
| Stock a/c (Increase: Rs.32,900-29,000) | Dr. | 3,900 | |||
| To Revaluation A/c | 9,100 | ||||
| (Being assets revalued at profit) | 15,000 | ||||
| (ii) | Revaluation a/c | Dr. | 3,900 | ||
| To machinery A/c (Decrease: Rs.25,000-22,400) | 2,600 | ||||
| To creditors a/c (Increase: Rs.29,300-28,000) | 1,300 | ||||
| (Being revaluation of assets and liabilities) | |||||
| (ii) | Revaluation a/c (Rs.9,100-3,900) | Dr. | 5,200 | ||
| To X’s Capital a/c | 2,400 | ||||
| To Y’s Capital a/c | 2,800 | ||||
| (Being revaluation of assets and liabilities) | |||||
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Chapter No. 1 – Accounting Not for Profit Organisations
Chapter No. 2 – Partnership Accounts – I
Chapter No. 3 – Partnership Accounts – II (Introduction)
Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
Chapter No. 2 – Techniques of Financial Statement Analysis
Chapter No. 3 – Ratio Analysis
Chapter No. 4 – Cash Flow Statement
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