16 May 2010
Sir In case amalgamation of parnership firms do we have to open Profit & Loss Adjustment A/c for revise in the value of Assets & Liabilities or we can pass the entry By Debiting/crediting the Asset/liability and corresponding adjustment is made in partner's capital A/c .I mean to say is there any requirement of opening P/l Adj A/c.I am asking this from exam point of view .If i had not opened the P/L adj A/c & directly credited to parner's capital a/c ,whether i will get any marks for it
17 May 2010
If its a simple amalgamation without revaluing the assets and liabilities of the partnership, I think no need would arise to open profit and loss adjustment account just like the same (Revaluation Account) in case of admission of partner.
But if you are making adjustment or revaluing the assets and liabilities of the partnership, you would need to pass the entries through opening the profit and loss adjustment account. And the adjustment to account can be made through the profit and loss adj account.
CAclubindia
