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Revaluation of assets and liabilities

Accountancy

Why revaluation of assets and liabilities is done at the time of admitting new partner ??

Atharv Sankliya

CA Final

★ 3K+

04-Nov-22 16:07

385

Answers (5)

Since the terms Dissolution of partnership and dissolution of partnership firms are different , When a partner is admitted it is dissolution of partnership of old partners , so we revalue them

krishnan venkatesan

CA Final

★ 25K+

04-Nov-22 16:19

Say you have land costing 1 lac. Now its market value is 10 lakhs. Will yo admit a new partner based on 1 lac or 10 lac.

CA Suraj Lakhotia

Admin

04-Nov-22 16:22

CA Suraj Lakhotia Admin

Say you have land costing 1 lac. Now its market value is 10 lakhs. Will yo admit a new partner based on 1 lac or 10 lac.

Thanks sir got it

Thread Starter

Atharv Sankliya

CA Final

★ 3K+

04-Nov-22 16:49

Does it is mandatory by law or any accounting standard???

Thread Starter

Atharv Sankliya

CA Final

★ 3K+

04-Nov-22 17:24

Thread Starter

Atharv Sankliya

Does it is mandatory by law or any accounting standard???

It is common sense.

CA Suraj Lakhotia

Admin

06-Nov-22 11:36