Revaluation of assets by sole proprietor
This query is : Resolved
Guest
Guest
(Querist)
04 November 2012
Can sole proprietor revalue assets of his organisation?
What would be the treatment in balance sheet?
What would be the treatment in balance sheet?
04 November 2012
Revaluation can be done by a sole proprietor also. But the question is what is the purpose of revaluation? Assset dr to revaluation reserve
Guest
Guest
(Querist)
04 November 2012
The sole proprietor wanted a loan from bank. The TOL/TNW is high. so the bank wont give loan. to reduce the ratio the sole proprietor is considering upward revaluation to lower the ratio
04 November 2012
If this is the reason for revaluation then I think revaluation will not serve your purpose
05 November 2012
Banks not provide loan on the basis of book value of assets .. actual market value of assets also to be considered while computing actual wealth of the business.
Guest
Guest
(Querist)
05 November 2012
The banks were saying that organisation did not have own capital . so he was suggesting to revalue the assets and increase the capital.
05 November 2012
U cannot increase the networth by creating revalauation reserve. Revaluation reserve wud b excluded while calculating the networth. So I think bank officials are misguiding u
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