Q21 prepare revaluation ac and pass journal entries

Dear Student, 

	Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
		General Reserve A/c	Dr.		60,000
		To karim’s Capital A/c				30,000
		To Rehman's Capital A/c				18,000
		To Navel’s Capital A/c				12,000
		(Reserve distributed)
		Investment Fluctuation Reserve A/c	Dr		30,000
		To Investment A/c				10,000
		To karim's Capital A/c				10,000
		To Rehamn's Capital A/c				6,000
		To Navel's Capital A/c				4,000
		(Reserve distributed)
		Karim’s Capital A/c	Dr		2,500
		Rehaman’s Capital A/c	Dr		1,500
		Navel’s Capital A/c	Dr		1,000
		To Advertisement suspense A/c				5,000
		(Advertisement suspense distributed )
		Rehman’s Capital A/c	Dr		10,000
		Navel’s Capital A/c	Dr.		40,000
		To Karim’s Capital A/c				50,000
		(Goodwill shared)
		Revaluation A/c	Dr.		25,000
		To Land & Building A/c				17,500
		To Provision for d/d				2,500
		To Navel’s Capital A/c (expenses)				5,000
		(Revaluation made)
		Machinery A/c	Dr.		12,000
		Motor Cycles A/c	Dr.		20,000
		Creditors A/c	Dr.		10,000
		To Revaluation A/c				42,000
		(Revaluation made)
		Revaluation A/c	Dr.		17,000
		To karim’s Capital A/c				8,500
		To Rehman's Capital A/c				5,100
		To Navel’s Capital A/c				3,400
		(Profit on Revaluation)

 

Revaluation Account
Dr.					Cr.
Particulars		Amount Rs	Particulars	Amount Rs
Land & Building		17,500	Motor Cycle	20,000
Provision for d/d		2,500	Creditors	10,000
C(Remuneration)		5,000	Machinery	12,000
Profit
Karim           8,500
Rehman      5,100
Navel           3,400		17,000
		42,000		42,000

Working Notes:
Calculation of Sacrifice or Gain
A=5/10- 1/3 = 5/30(sacrifice)
B= 3/10- 1/3 = -1/30 (gain)
C = 2/10 - 1/3 = - 4/30 ( gain)

Goodwill = (-50,000+250000+250000)/3 ×2 = 300, 000


​Regards