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Liability Ald 10 For any increase in value of liability Revaluation Ale Dr with the amount of increase) To Liability Alc ivFor any decrease in
Liability Ald 10 For any increase in value of liability Revaluation Ale Dr with the amount of increase) To Liability Alc ivFor any decrease in value of liability Dr. (with the amount of decrease) To Revaluation Ale For an unrecorded asset Unrecorded Asset Alc Dr(with the amount of unrecorded asset) To Revaluation Ale (vi) For an unrecorded liability Revaluation Ale Dr (with the amount of unrecorded liability) To Unrecorded Liability Alc (vii) For transfer of gain on revaluation Revaluation Alc Dr Old Ratio) To Old Partners' Capital Alc (viii) For transfer of loss on revaluation Old Partners' Capital Alc Dr. (Old Ratio) To Revaluation Alc Tutorial Notes In case, debtors are expected to be realized at less than the book value then it is suggested to credit provision for bad debts and not debtors. ILLUSTRATION 35 (Preparation of Revaluation Account). Following is the Balance Sheet of R and D. K1 BALANCE SHEET as at 31.3.2010 Liabilities Rs. Assets Rs. 23.000 12.000 Creditors Bills Payable Capitals. - R D Cash Debtors Patents Machinery 7.000 30,000 3,000 35.000 20.000 20.000 40,000 75.000 75,000 L is admitted on following terms: (1) Machinery is to be decreased by 10%. (11) Creditors are increased by Rs.2.000 and Bills Payable decreased by Rs.1,000 Patents are valueless. Prepare Revaluation Account
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