Question 19 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 Chapter 4 of +2- Part-

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 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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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2 Book 1 min - Question 19 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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