Question

Pass necessary Journal entries for the following in case of Revaluation :

(a) The value of furniture is to be increased by Rs 25,000 (Book value is Rs 10,000).

(b) Stock is found undervalued by Rs 4,000 (Book value is Rs 20,000).

(c) An office equipment of Rs 6,000 is unrecorded in the books.

(d) Machinery is taken over by B for Rs 25,000 (Given book value of machinery is Rs 21,000).

(e) there is a liability of Rs 3,000 included in Bills Payable, that is not likely to arise.

(f) Rent of Rs 3,000 still outstanding.

Answer 1

JOURNAL
$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F.}& \text{Debit}& \text{Credit}\\ & & & & \text{(Rs)}& \text{(Rs)}\\ & \text{Furniture A/c}& \text{Dr.}& & 25,000& \\ & \text{To Revaluation A/c}& & & & 25,000\\ & \underset{–}{\text{(Being increase in the value of furniture)}}& & & & \\ & \text{Stock A/c}& \text{Dr.}& & 4,000& \\ & \text{To Revaluation A/c}& & & & 4,000\\ & \underset{–}{\text{(Being increase in the value of stock)}}& & & & \\ & \text{Office Equipment A/c}& \text{Dr.}& & 6,000& \\ & \text{To Revaluation A/c}& & & & 6,000\\ & \underset{–}{\text{(Being unrecorded office equipment recorded)}}& & & & \\ & \text{Machinery A/c}& \text{Dr.}& & 4,000& \\ & \text{To Revaluation A/c}& & & & 4,000\\ & \underset{–}{\text{(Being machinery value increased)}}& & & & \\ & \text{B's Capital A/c}& \text{Dr.}& & 25,000& \\ & \text{To Machinery A/c}& & & & 25,000\\ & \underset{–}{\text{(Being machinery taken over by B)}}& & & & \\ & \text{Bills Payable A/c}& \text{Dr.}& & 3,000& \\ & \text{To Revaluation A/c}& & & & 3,000\\ & \underset{–}{\text{(Being liability not likely to arise)}}& & & & \\ & \text{Revaluation A/c}& \text{Dr.}& & 3,000& \\ & \text{To Outstanding Rent A/c}& & & & 3,000\\ & \text{(Being rent still outstanding)}& & & & \end{array}$