InQ.16 I don't understand that why adjustments are not showing in the balance sheet.(Double entry book keeping 2015)
Shobhana,
Read the information given just below the Balance Sheet. It says, that journal entries are to be passed without opening Revaluation A/c. It means that assets and liabilities are to be shown at their old figures in the New Balance Sheet. Ascertain the net effect of revaluation, if its positive then adjust it by debiting the gaining partners and crediting the sacrificing partners in their gaining/sacrificing ratio. If it comes to be negative, then adjust it by debiting the sacrificing partners and crediting the gaining partners in their gaining/sacrificing ratio.
From, the accumulated profits and losses, we just have 'General Reserve'. That will be credited to the capital accounts of all the partners in their old profit sharing ratio.
Read the information given just below the Balance Sheet. It says, that journal entries are to be passed without opening Revaluation A/c. It means that assets and liabilities are to be shown at their old figures in the New Balance Sheet. Ascertain the net effect of revaluation, if its positive then adjust it by debiting the gaining partners and crediting the sacrificing partners in their gaining/sacrificing ratio. If it comes to be negative, then adjust it by debiting the sacrificing partners and crediting the gaining partners in their gaining/sacrificing ratio.
From, the accumulated profits and losses, we just have 'General Reserve'. That will be credited to the capital accounts of all the partners in their old profit sharing ratio.