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 (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- 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
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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