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plz help!!!

(Guest)

Please tell me in case of partnership firms if there is revaluation of Assets & Liabilities ,then do we need to open Revaluation A/c .In xams, I directly posted the changes in value of individual Assets & Liabilities to Partner's capital A/c in their profit sharing ratio without opening the revaluaton A/c .Will i get any marks for it ????

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21 Replies

Ajay kumar (assistant) (481 Points)
Replied 18 May 2010

Yes revaluation account should be opened ............

P A N K A J (CA FINAL) (740 Points)
Replied 18 May 2010

Originally posted by : Ajay kumar
	Yes revaluation account should be opened ............

agreed...

Gopal G (CA Final ) (44 Points)
Replied 18 May 2010

Ya Surbhi, you should have opened a revaluation account. Be don't worry , if your other ledger, P& L and balance sheet are correct & matching then you will be deducted for only proportionate marks.

(Guest)

but how much i will get if it was a 16 mark quetion & my B/s is ok

Ramveer Singh Shekhawat (CA & CS Final) (51 Points)
Replied 18 May 2010

Atleast 14

CA Hiren Mistry (article) (69 Points)
Replied 18 May 2010

u will get maximum 10 bcoz the entry made by you create mismatch in balance in patners capital accounts and reserves and generally these entries are carries 4 to 5 marks including posting and balance in balance sheet. dont want to hurt u but this is normal trend.

(Guest)

thanks for that

Naveen (Learner) (116 Points)
Replied 18 May 2010

Hi Surbhi,

Yes, In such a case Revaluation account is prepared and profit or loss on reveluation is transferred to Partner's capital account.

Each step carry marks and you have to go step by step.

At the end tallying Balance Sheet may not fetch you good marks because you ommited the main account that is Revaluation account and Partner's capital account.

But well, Lets hope for the Best :)

(Guest)

also tell me if i need to open seperate partner's capital a/c for each of the amagamating firms or we can make single a/c bcoz one of the partner is common to both the firms ?

CA Sahil Singla.. (Service Tax ) (3746 Points)
Replied 18 May 2010

i think u should prepare seperate parner's capital a/c 's for both d firms...but it will be difficult to make adjustment for goodwill and balancing capital if quetion asks so.

CA Naresh Sharma (CA Final & Article) (69 Points)
Replied 18 May 2010

i think if ur balance part is ok than u will get atleast 12 marks

(Guest)

thanks naresh

Aravind.. (CA) (1262 Points)
Replied 18 May 2010

i knew the question that you are asking about.

By the way it is not revaluation account but realisation account based on going concern assumption.

the question doesnt need you to do so, but just a working for increase and decrease in the assets and liabilities value might suffice.

for sahil - goodwill adjustment is easy man.

you have to debit each partners capital account for the goodwill of previous firms' value and in the new firm you have to credit the goodwill account as per the total of the amalgamating firms total goodwill.

so there wont be any goodwill in new firm.