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Partnership accounts

rn venkateswarlu (student) (36 Points)

27 May 2011

what is the accounting treatment ?

Given asset is devalued by10000/- in the adjustments.

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16 Replies

Chiradeep.R.H (Chirahi & Associates - Consultants) (240 Points)
Replied 27 May 2011

Revaluaton Reserve a/c Dr 10000

To Asset a/c 10000

Sasanka Bhalaki (Student) (1935 Points)
Replied 27 May 2011

yes debit revaluation account and credit the asset account with 10000/-

1 Like

Pavan Bharadwaj (Practicing Chartered Accountant) (353 Points)
Replied 27 May 2011

The above entry is to be passed only when there is upward revaluation of asset value previously. Otherwise entry to be passed is

P&l A/c Dr To Asset A/c.

1 Like

Amit Surana (Student CA/CS-Professional) (268 Points)
Replied 27 May 2011

I to agree

Profit & Loss A/c................Dr 10000

To Asset A/c 10000

Couse losses are to be booked to profit&loss A/c as & when it occures........

1 Like

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 27 May 2011

revaluation ac.- - - - - - - dr.

to asset

1 Like

Aravind.. (CA) (1262 Points)
Replied 27 May 2011

it has to be debited to revaluation account and revaluation loss has to be transferred to partners' capital account. Friends, i know why you all say devaluation of asset has to be debited to profit and loss account( AS 6). But in partnership accounts mostly revaluations ll occur during change in constitution of the firm. So it is right to debit it to revaluation account and its profit/loss to be transferred to old partners' capital account.

Please correct me if i am Wrong.

Anshu Garg (working) (139 Points)
Replied 27 May 2011

AGREE WITH PAWAN

NEHA. (-IPCC,BCOM(H)) (39 Points)
Replied 27 May 2011

revalauation a/c dr..

to assest

Bhanu Prakash Rao (Think Beyond Stay Ahead...!) (1064 Points)
Replied 27 May 2011

agree with pavan

Manjul Soni. (CA Student.) (1407 Points)
Replied 27 May 2011

Originally posted by : Chiradeep.R.H
	Revaluaton Reserve a/c Dr 10000 To Asset a/c 10000

Dimple Kotak (Accounts & Tax ) (185 Points)
Replied 27 May 2011

I think, when there is change in constitution : Revaluation a/c dr.

To, Asset a/c

In other case: P&L a/c dr.

To, Asset a/c.

1 Like

satish kumar Chauhan (accountant) (344 Points)
Replied 28 May 2011

agree with pawan

satish kumar Chauhan (accountant) (344 Points)
Replied 28 May 2011

in case of change of constituition

1st entry Dr to revaluation Reseve a/c and cr to assets a/c 2.nd entry dr to old partners a/c and credt to revaluation res a/c

In other case

Dr to P & L a/c and cr to ssets a/c

Mehul Jain (ROC and R&D Executive) (59 Points)
Replied 28 May 2011

If there appears revalution a/c in the credit side of the b/s assuming that the same a/c was previously revalued upward and now devalued it should be debited to the revaluation a/c to the extent the bal in the reval a/c or otherwise dedited to P&L.