Amar & Akbar were partners in a firm sharing P & L in ratio 3 : 2. Their Balance Sheet as at March 31, 2023 was as under:
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditor |
50,000 |
Land & Building |
2,50,000 |
|
Bank Loan |
2,00,000 |
Plant & Machinery |
1,80,000 |
|
Amar Capital |
2,80,000 |
Goodwill |
1,00,000 |
|
Akbar Capital |
1,20,000 |
Stock |
60,000 |
|
|
|
Debtor |
40,000 |
|
|
|
Bank |
20,000 |
|
|
6,50,000 |
|
6,50,000 |
They admitted Anthony as a new partner for 1/5 share which he acquired equally from Amar and Akbar.
Based on above information, answer questions.
Land & Building was to be increased to ₹3,00,000. Revaluation A/c will be _________ by _________ .
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) - Credited by ₹50,000.
Land & building = ₹2,50,000
Revalued figure = ₹3,00,000
Increased = 3,00,000 - 2,50,000
= 50,000
As value is increased so journal entry will be-
Land & Building Dr. ₹50,000
To Revaluation A/c ₹50,000
So, revaluation account will be credited by ₹50,000.