stock is overvalued by 4000, will go on which side of revaluation and why?
Hey
Stock is overvalued by Rs 4,000, that means, Stock is now to be reduced with Rs 4,000 as the value appearing in Balance Sheet is in excess of its original value. So, in the revaluation account, Stock will appear on the debit side and in the Balance Sheet, Stock will be reduced by Rs 4,000.
For more cases like these, you may refer to the study material available on our website. Follow the link given below:
https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/partnership-accounts/reconstitutionadmission-of-a-partner/435_2430_5872#slide4_revaluation-account-cash-account-balance-sheet-and-adjustments
Stock is overvalued by Rs 4,000, that means, Stock is now to be reduced with Rs 4,000 as the value appearing in Balance Sheet is in excess of its original value. So, in the revaluation account, Stock will appear on the debit side and in the Balance Sheet, Stock will be reduced by Rs 4,000.
For more cases like these, you may refer to the study material available on our website. Follow the link given below:
https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/partnership-accounts/reconstitutionadmission-of-a-partner/435_2430_5872#slide4_revaluation-account-cash-account-balance-sheet-and-adjustments