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 )