Revaluation account
This account is very useful for calculating the profit or loss when partners decides to reconstruct their partnership firm . When a new partner comes in firm or exit from firm , making of this account is very necessary , I am giving the proforma of this account
Revaluation account
Dr. side
To Asset ( decrease in the amount of certain asset )
To Liabilities ( increase in the amount of any certain liabilities )
To Liabilities ( if any liability have but not recorded in books )
To transfer of profit to partner in old ratio
(if credit side is more than debit side )
Cr. Side
By Asset ( increase in the amount of certain asset )
By Liabilities ( Decrease in the amount of any certain liabilities )
By Asset ( if any asset have but not recorded in books )
By transfer of profit to partner in old ratio
(if debit side is more than credit side )
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