Revaluation/reassessment of assets and liabilities

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why revaluation of assets and liabilities is done at the time of admitting new partner??
Replies (4)

Partnership act must suggest that. I dont remember reading rhat part. Technically its not required because its only profit sharing ratio which is important. Or maybe they want to classify assets and liabilities based on partners accounts for clarity

Just like i guessed right the answer is simple accountability. https://unacademy.com/content/cbse-class-11/study-material/accountancy/revaluation-of-assets-and-reassessment-of-liabilities/#:~:text=profit%20or%20loss.-,Ans.,of%20fixed%20assets%20and%20liabilities.

I didt guesz it but derived it from the fact

CA Revaluation is difgerent than b.com poor quality revaluation.  Nomenclature clashes in partnership accounting. Lucky MBA doesnt use any vocabulary

 

I found this article vedy useful

https://www.geeksforgeeks.org/accounting-treatment-of-revaluation-of-assets-and-liabilities-change-in-profit-sharing-ratio/


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