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An imp Question from Internal Reconstruction

Can you please explain why they calculated Profit on revaluation this way? ( 1st pic) (Q in 2nd pic) I have also solved in a way it felt correct. Please tell me why my calculation is wrong. This is one of the most important sums from this easy chapter, from which If questions come I dont want to lose marks.

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InShot_20201111_005157859.jpg


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 00:56

39

Answers (7)

Best Answer

Prepare revaluation account

FP a/c

Attachments

20201111_091758.jpg


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 09:20

Prepare revaluation account


Ruhi Khan

Ruhi Khan

CA Inter

2K+

11-Nov-20 02:31

Prepare revaluation account

I am pretty sure you meant prepare freehold property account which I did (see in image below) and now I got to understand the hold of it. Thank you.


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Nov-20 09:19

Whatever the increase in the freehold property is capital profit and shall be transferred to capital reserves after adjusting with all capital losses


Gandlapati Hari Reddi

Gandlapati Hari Reddi

CA Final

9K+

11-Nov-20 09:52

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