plz help!!!

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

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

agreed...

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. 

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

Atleast 14

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.

thanks for that

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 :)

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 ?

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.

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

thanks naresh

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.

yes u should open the revaluation account of partners

 as it would mismatch between both the acoounts.