ACCORDING TO TS GREWAL 2015-1 PAGE NO 3.23 QUES NO 14...THERE IS ADJUSTMENT MADE ON PROFIT ON REVALUATION AND GENERAL RESERVE......WHY ARE ITEMS OF REVALUATION NOT AJUSTED IN BALANCE SHEET THOUGH GENERAL RESERVE IS TAKEN??
Praveen is absolutely correct.
In the question, it is clearly mentioned that ' Partners decided that altered valued are not be recorded in the books and general reserve will not be distributed among the partners, which implies that assets and liabilities are to be shown in the New Balance Sheet at their old values along with the General Reserve.
For this purpose, an adjusting entry has been passed with Rs 2,500.
I hope this will help you.
Keep Posting!!
In the question, it is clearly mentioned that ' Partners decided that altered valued are not be recorded in the books and general reserve will not be distributed among the partners, which implies that assets and liabilities are to be shown in the New Balance Sheet at their old values along with the General Reserve.
For this purpose, an adjusting entry has been passed with Rs 2,500.
I hope this will help you.
Keep Posting!!