A, B and C are partners sharing profits and losses in the ratio of 3 : 2 :1 respectively. With effect from 1.4.2015 they decided to share future profits equally. For this purpose the assets and liabilities were revalued as under : Particulars Old Values ($) Revised Values ($) 30,000 54,000 24,500 14,70,000 Furniture 28,000 Computers Land and Buildings Machinery Sundry Creditors 12,90,000 46,500 50,800 34,870 30,860 Prepare Revaluation Account and give necessary journal entries for recording the above changes in assets and liabilities.

A, B and C are partners sharing profits and losses in the ratio of 3 : 2 :1 respectively. With effect from 1.4.2015 they decided to share future profits equally. For this purpose the assets and liabilities were revalued as under : Particulars Old Values ($) Revised Values ($) 30,000 54,000 24,500 14,70,000 Furniture 28,000 Computers Land and Buildings Machinery Sundry Creditors 12,90,000 46,500 50,800 34,870 30,860 Prepare Revaluation Account and give necessary journal entries for recording the above changes in assets and liabilities.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

A, B and C are partners
sharing profits and losses in the ratio of 3 : 2 :1 respectively. With effect from 1.4.2015
they decided to share future profits equally. For this purpose the assets and liabilities were
revalued as under :
Particulars
Old Values ($)
Revised Values ($)
30,000
54,000
24,500
14,70,000
50,800
Furniture
28,000
Computers
Land and Buildings
Machinery
Sundry Creditors
12,90,000
46,500
34,870
30,860
Prepare Revaluation Account and give necessary journal entries for recording the
above changes in assets and liabilities.

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