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An imp Question from Internal Reconstruction

Accountancy

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.

Kumarjit Dey

CA Inter

★ 4K+

11-Nov-20 00:56

905

Answers (7)

Best Answer

Ruhi Khan

Prepare revaluation account

FP a/c

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Thread Starter

Kumarjit Dey

CA Inter

★ 4K+

11-Nov-20 09:20

Prepare revaluation account

Ruhi Khan

CA Inter

★ 2K+

11-Nov-20 02:31

Ruhi Khan

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.

Thread Starter

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

Qualified CA

★ 17K+

11-Nov-20 09:52

Gandlapati Hari Reddi

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

Thank you

Thread Starter

Kumarjit Dey

CA Inter

★ 4K+

11-Nov-20 12:28

Thread Starter

Kumarjit Dey

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.

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Ruhi Khan

CA Inter

★ 2K+

11-Nov-20 13:01

Gandlapati Hari Reddi

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

Yes..tq for ur understanding

Ruhi Khan

CA Inter

★ 2K+

11-Nov-20 13:04