{"id":1351,"date":"2019-06-19T17:52:25","date_gmt":"2019-06-19T17:52:25","guid":{"rendered":"https:\/\/commerceiets.com\/?p=1351"},"modified":"2019-06-19T17:52:25","modified_gmt":"2019-06-19T17:52:25","slug":"revaluation-account","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/revaluation-account\/","title":{"rendered":"REVALUATION ACCOUNT"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/revaluation-account\/#REVALUATION_ACCOUNT\" title=\"REVALUATION ACCOUNT\">REVALUATION ACCOUNT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/revaluation-account\/#PURPOSE\" title=\"PURPOSE \">PURPOSE <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/revaluation-account\/#SPECIMEN_OF_REVALUATION_ACCOUNT\" title=\"SPECIMEN OF REVALUATION ACCOUNT\">SPECIMEN OF REVALUATION ACCOUNT<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" style=\"text-align:center\"><span class=\"ez-toc-section\" id=\"REVALUATION_ACCOUNT\"><\/span>REVALUATION ACCOUNT<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Revaluation account is a nominal account. It is prepared in case when partners want to alter or revise the value of assets and liabilities. It is opened with a purpose to ascertain profit or loss occurring due to increase or decrease in assets and liabilities. An increase in the value of assets and decrease in the value of liabilities is credited to this Account. On the other hand, decrease in the value of assets and increase in the value of liabilities is debited to Revaluation Account. The difference of the debit and credit side will be Profit\/ Loss. It is prepared by the <a href=\"https:\/\/commerceiets.com\/partnership-business\/\">Partnership<\/a> firms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"text-align:center\"><span class=\"ez-toc-section\" id=\"PURPOSE\"><\/span><strong>PURPOSE <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Revaluation Account is prepared to determine the profit or loss arising out of revaluation, specifically when partners have decided to alter the value of assets and liabilities.<\/p>\n\n\n\n<p><strong>ACCOUNTING TREATMENT<\/strong><\/p>\n\n\n\n<table class=\"wp-block-table aligncenter has-subtle-light-gray-background-color has-background\"><tbody><tr><td>\n  <strong>ITEMS<\/strong>\n  <\/td><td>\n  <strong>ENTRY<\/strong>\n  <\/td><td>\n  <strong>REASON<\/strong>\n  <\/td><\/tr><tr><td>\n  Increase\n  in Assets\n  <\/td><td>   Asset   A\/c&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr.   &nbsp; &nbsp;<br \/>To   Revaluation A\/c   <\/td><td>\n  Increase\n  in the value of assets is a gain.\n  <\/td><\/tr><tr><td>\n  Decrease\n  in Assets\n  <\/td><td>   Revaluation   A\/c&nbsp;&nbsp; Dr.   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/> To Assets A\/c   <\/td><td>\n  Decrease\n  in the value of assets is a loss.\n  <\/td><\/tr><tr><td>\n  Unrecorded\n  Assets brought into the books\n  <\/td><td>   Assets   A\/c&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr.   &nbsp; &nbsp;<br \/>To   Revaluation A\/c    <\/td><td>\n  Addition\n  to the assets is a gain.\n  <\/td><\/tr><tr><td>\n  Decrease\n  in Liabilities\n  <\/td><td>   Liabilities   A\/c&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Dr.   &nbsp;&nbsp;&nbsp;<br \/>To Revaluation A\/c   <\/td><td>\n  Decrease\n  in the liabilities is a gain.\n  <\/td><\/tr><tr><td>\n  Increase\n  in Liabilities\n  <\/td><td>   Revaluation   A\/c &nbsp;&nbsp;Dr.   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/> To Liabilities A\/c   <\/td><td>\n  Increase\n  in the Liabilities is a loss.\n  <\/td><\/tr><tr><td>\n  Creating\n  Provisions\n  <\/td><td>   Revaluation   A\/c&nbsp;&nbsp; Dr.   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>To Provision A\/c   <\/td><td>\n  It\n  reduces profit.\n  <\/td><\/tr><tr><td>\n  Unrecorded\n  Liabilities brought into the books\n  <\/td><td>   Revaluation   A\/c &nbsp;&nbsp;Dr.   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>To Liabilities A\/c   <\/td><td>\n  Addition\n  to the Liabilities is a Loss.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"text-align:center\"><span class=\"ez-toc-section\" id=\"SPECIMEN_OF_REVALUATION_ACCOUNT\"><\/span><strong>SPECIMEN OF REVALUATION ACCOUNT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p style=\"text-align:center\"><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;                            REVALUATION ACCOUNT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/p>\n\n\n\n<p> <\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>PARTICULARS<\/strong>\n  <\/td><td>\n  <strong>\u20b9<\/strong><strong><\/strong>\n  <\/td><td>\n  <strong>PARTICULARS<\/strong>\n  <\/td><td>\n  <strong>\u20b9<\/strong><strong><\/strong>\n  <\/td><\/tr><tr><td>To   Assets A\/c   <br \/>(Decrease   in Assets)   <br \/>To   Liabilities A\/c   <br \/>(Increase   in Liabilities)   <br \/>To   Provisions A\/c   <br \/>(Creation   of Provisions)   <br \/>To   Profit (B.F.)   <br \/>(Partner\u2019s   Capital)   <\/td><td>\n  &nbsp;\n  <\/td><td>By   Assets A\/c   <br \/>(Increase   in Assets)   <br \/>By   Unrecorded Assets   <br \/>By   Liabilities A\/c   <br \/>(Decrease   in Liabilities)   <br \/>By   Provisions A\/c   <br \/>(Decrease   in Provision)   <br \/>BY   Loss (B.F.)   <br \/>(Partner\u2019s   Capital A\/c)   <\/td><td>\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>\u0003<\/p>\n","protected":false},"excerpt":{"rendered":"<p>REVALUATION ACCOUNT Revaluation account is a nominal account. It is prepared in case when partners want to alter or revise the value of assets and liabilities. It is opened with a purpose to ascertain profit or loss occurring due to increase or decrease in assets and liabilities. An increase in the value of assets and&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/revaluation-account\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;REVALUATION ACCOUNT&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":1363,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,21],"tags":[39],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1351"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=1351"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1351\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/1363"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=1351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=1351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=1351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}