what is the accounting treatment ?
Given asset is devalued by10000/- in the adjustments.
16 Replies
Chiradeep.R.H
(Chirahi & Associates - Consultants)
(240 Points)
Replied 27 May 2011
Revaluaton Reserve a/c Dr 10000
To Asset a/c 10000
Sasanka Bhalaki
(Student)
(1935 Points)
Replied 27 May 2011
yes debit revaluation account and credit the asset account with 10000/-
Pavan Bharadwaj
(Practicing Chartered Accountant)
(353 Points)
Replied 27 May 2011
The above entry is to be passed only when there is upward revaluation of asset value previously. Otherwise entry to be passed is
P&l A/c Dr To Asset A/c.
Amit Surana
(Student CA/CS-Professional)
(268 Points)
Replied 27 May 2011
I to agree
Profit & Loss A/c................Dr 10000
To Asset A/c 10000
Couse losses are to be booked to profit&loss A/c as & when it occures........
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 27 May 2011
revaluation ac.- - - - - - - dr.
to asset
Aravind..
(CA)
(1262 Points)
Replied 27 May 2011
it has to be debited to revaluation account and revaluation loss has to be transferred to partners' capital account. Friends, i know why you all say devaluation of asset has to be debited to profit and loss account( AS 6). But in partnership accounts mostly revaluations ll occur during change in constitution of the firm. So it is right to debit it to revaluation account and its profit/loss to be transferred to old partners' capital account.
Please correct me if i am Wrong.
Manjul Soni.
(CA Student.)
(1407 Points)
Replied 27 May 2011
| Originally posted by : Chiradeep.R.H | ||
 |
Revaluaton Reserve a/c Dr 10000 To Asset a/c 10000 |
 |
Dimple Kotak
(Accounts & Tax )
(185 Points)
Replied 27 May 2011
I think, when there is change in constitution : Revaluation a/c dr.
To, Asset a/c
In other case: P&L a/c dr.
To, Asset a/c.
satish kumar Chauhan
(accountant)
(347 Points)
Replied 28 May 2011
in case of change of constituition
1st entry Dr to revaluation Reseve a/c and cr to assets a/c 2.nd entry dr to old partners a/c and credt to revaluation res a/c
In other case
Dr to P & L a/c and cr to ssets a/c
Mehul Jain
(ROC and R&D Executive)
(59 Points)
Replied 28 May 2011
If there appears revalution a/c in the credit side of the b/s assuming that the same a/c was previously revalued upward and now devalued it should be debited to the revaluation a/c to the extent the bal in the reval a/c or otherwise dedited to P&L.
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