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Partnership unit 2

In illustration 1 we found realisation profit by crediting excess amount and debiting deficit amount taken And then less provision realisation profit came . But in practice problem 1 they did it by calculating pc and and transfer it to realisation and found profit . But when I did practice problem in illustration 1 model revaluation profit answer is not matching with book . Please any one reply

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Enuguru Sai Nithin

Enuguru Sai Nithin

CA Inter

76K+

20-Mar-21 12:51

19

Answers (6)

Bro, wow you have 76,000 points :)


Meda Jeevansai

Meda Jeevansai

CA Foundation

11K+

20-Mar-21 15:26

In realization a/c the values of assets are taken at book value. In the 1st illustration the Journal entries are made at agreed values In the practice question the assets are transfered to realization at their book values. Hence, the difference


ruchi lahoti

ruchi lahoti

Moderator

20-Mar-21 18:19

In realization a/c the values of assets are taken at book value. In the 1st illustration the Journal entries are made at agreed values In the practice question the assets are transfered to realization at their book values. Hence, the difference

Can you please elaborate still I can't understand . In any method the realisation profit should be same na In illustration 1 they took the excess or deficit over book value to realisation alc In practice prob 1 they took book values to realisation alc and in pc the excess or deficit will be automatically adjusted. So why will difference comes in both methods ??


Enuguru Sai Nithin

Enuguru Sai Nithin

CA Inter

76K+

20-Mar-21 18:29

Can you please share your working?

Please take a look

Attachments

IMG_20210320_200618.jpg


Enuguru Sai Nithin

Enuguru Sai Nithin

CA Inter

76K+

20-Mar-21 20:06

Please take a look

The difference is because of Goodwill which is dealt in separate working note in each problem. Once you do the entire sum in earlier method, the final balance sheet will be same. The same note is also given at the end of practice problem.


Suraj Lakhotia

Suraj Lakhotia

Admin

22-Mar-21 16:18

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