CA
1262 Points
Posted on 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.