If the necessary journal entries are required to be recorded, without opening Revaluation Account, which entries need to be passed and how to arrive at their amounts?

Dear Student


In case Revaluation A/c is not to be opened, then the gain/loss on revaluation is worked out through a statement.
Statement of Computation of Gain/Loss on Revaluation without preparing Revaluation Account
Particulars  Amt 
Add :   
Increase in Assets  xxx 
Decrease in Liabilities  xxx 
   
Less :  
Decrease in Assets  xxx 
Increase in Liabilities  xxx 
   
   
Net amount (Gain/ (Loss))  xxx 


If the net effect is +ve (profit), then the gaining partners compensate the sacrificing partners If the net effect is -ve (loss), then the sacrificing partners compensate the gaining partners. Similar is the case of accumulated profits/losses and reserves




Regards

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