Revaluation/reassessment of assets and liabilities
Atharv Sankliya (1356 Points)
04 November 2022
why revaluation of assets and liabilities is done at the time of admitting new partner??
4 Replies
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 04 November 2022
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
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 04 November 2022
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.
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 04 November 2022
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
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 17 November 2022
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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