GAINING PARTNER'S CAPITAL A/C DR.

TO SACRIFICING PARNTER'S CAPITAL A/C

WHEN GOODWILL ACCOUNT ALREADY EXISTS IN THE BOOKS/BALANCE SHEET

OLD PARTNERS CAPITAL A/C DR.

TO GOODWILL A/C (OLD RATIO)

WHEN GOODWILL ACCOUNT IS RAISED AND WRITTEN OFF

ACCOUNTING TREATMENT OF RESERVES,ACCUMULATED PROFITS AND LOSSES

DISTRIBUTION OF RESERVES , ACCUMULATED PROFITS AND LOSSES AND DEFFERED REVENUE EXPENDITURE

JOURNAL ENTRY FOR GENERAL RESERVE

 JOURNAL ENTRY FOR GENERAL RESERVE

JOURNAL ENTRY FOR ACCUMULATED PROFITS (PROFIT AND LOSS A/C CR Balance)

JOURNAL ENTRY FOR ACCUMULATED LOSSES(PROFIT AND LOSS A/C DR BALANCE)

JOURNAL ENTRY FOR DEFERRED REVENUE EXPENDITURE LIKE ADVERTISEMENT SUSPENSE ACCOUNT

WORKMEN COMPENSATION RESERVE

IT IS A RESERVE CREATED OUT OF FIRM'S PROFITS TO MEET POSSIBLE LIABILITY TO
PAY COMPENSATION TO EMPLOYEES DUE TO INDUSTRIAL ACCIDENT,ILLNESS ETC.

ACCOUNTING TREATMENT OF WORKMEN COMPENSATION RESERVE UNDER DIFFERENT SITUATIONS.

1.WHEN THERE IS NO CLAIM AGAINST WORKMEN COMPENSATION RESERVE

2.WHEN COMPENSATION CLAIM IS EQUAL TO THE AMOUNT OF WORKMEN COMPENSATION RESERVE

3.WHEN COMPENSATION CLAIM IS LESS THAN THE AMOUNT OF WORKMEN COMPENSATION RESERVE

4.WHEN COMPENSATION CLAIM IS MORE THAN THE AMOUNT OF WORKMEN COMPENSATION RESERVE
 INVESTMENT FLUCTUATION RESERVE

IT IS A RESERVE WHICH IS CREATED OUT OF PROFITS TO MEET

THE FALL IN THE MARKET VALUE OF INVESTMENTS.

ACCOUNTING TREATMENT OF INVESTMENT FLUCTUATION RESERVE IN DIFFERENT SITUATIONS

1.WHEN MARKET VALUE OF INVESTMENT IS EQUAL TO BOOK VALUE

2.WHEN MARKET VALUE OF INVESTMENTS IS LOWER THAN BOOK VALUE AND

LOSS ON INVESTMENT IS LESS THAN THE INVESTMENT FLUCTATION RESERVE.

3.WHEN LOSS ON INVESTMENT IS EQUAL TO INVESTMENT FLUCTATION RESERVE

4.WHEN LOSS ON INVESTMENT IS MORE THAN INVESTMENT FLUCTUATION RESERVE

5.WHEN MARKET VALUE OF INVESTMENTS IS HIGHER THAN INVESTMENT FLUCTUATION RESERVE

WHEN ADJUSTMENT ENTRY IS PASSED FOR RESERVES,ACCUMULATED PROFITS
AND DEFERRED REVENUE EXPENDITURE
( OR)
WHEN RESERVES , ACCUMULATED PROFITS AND DEFERRED REVENUE
EXPENDITURE ARE TO BE RETAINED IN THE BOOKS AT THEIR ORIGINAL VALUES

IN SUCH CASE AN ADJUSTMENT ENTRY IS PASSED AS UNDER:

1.WHEN THE NET EFFECT OF ALL ITEMS IS POSITIVE

2.WHEN THE NET EFFECT OF ALL ITEMS IS NEGATIVE

REVALUATION OF ASSETS AND REASSESSMENT OF LIABILITIES

A Revaluation account is opened to record the increase or decrease in assets and

liabilities. Revaluation account is also called Profit and loss adjustment
account. It is a Nominal account. Revaluation account is credited with increase in value of assets and
decrease in the value of liabilities and vice versa.

REVALUATION ACCOUNT

PARTICULARS RS PARTICULARS RS
1.WHEN REMUNERATION FOR REVAULATION EXPENSES IS PAID TO A PARTNER

2.WHEN REVALUATION EXPENSES ARE PAID BY THE FIRM

CONCEPT-1
WHEN REVISED VALUES OF ASSETS AND LIABILITIES ARE RECORDED

1] For the increase in the value of Assets

Assets A/c (Individually) Dr.

To Revaluation A/c

(Being increase in the value of assets on revaluation)

2] For a decrease in the value of Assets

Revaluation A/c Dr.

To Assets A/c (Individually)

(Being decrease in the value of assets on revaluation)

3] For an increase in the value of Liabilities

Revaluation A/c Dr.

To Liabilities A/c (Individually)

(Being increase in the value of liabilities on revaluation)

4] For a decrease in the value amount of Liabilities

Liabilities A/c (Individually) Dr.

To Revaluation A/c

(Being decrease in the value of liabilities on revaluation)

5] For an unrecorded Asset

Assets A/c Dr.

To Revaluation A/c