what is the accounting treatment ?
Given asset is devalued by10000/- in the adjustments.
what is the accounting treatment ?
Given asset is devalued by10000/- in the adjustments.
Revaluaton Reserve a/c Dr 10000
To Asset a/c 10000
yes debit revaluation account and credit the asset account with 10000/-
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.
revaluation ac.- - - - - - - dr.
to asset
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.
revalauation a/c dr..
to assest
agree with pavan
| Originally posted by : Chiradeep.R.H | ||
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Revaluaton Reserve a/c Dr 10000 To Asset a/c 10000 |
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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.
agree with pawan
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
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.
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