in admission, in asset side of b/s bills receivable is given rs 10000....n adjustment Is given bills receivable not to be taken over by the new partnership.wat will b the treatment? will it be shown in debit side of revaluation a/c???
Sanaya,
Generally, at the time of reconstitution, there are two treatments of assets i.e. either they will appear in the New Balance Sheet or will not appear. According to the information provided by you we assume it to be the first case and also assume that bill receivable have been honoured. According to this, it will not affect the Realisation A/c and in Balance Sheet, balance of Cash/Bank will increase by Rs 10,000 and bills Receivable have been reduced by Rs 10,000.
However, for understanding of the same, we advise you to specify the relevant details related to it so that we can help you better.
Hope you understand.
Generally, at the time of reconstitution, there are two treatments of assets i.e. either they will appear in the New Balance Sheet or will not appear. According to the information provided by you we assume it to be the first case and also assume that bill receivable have been honoured. According to this, it will not affect the Realisation A/c and in Balance Sheet, balance of Cash/Bank will increase by Rs 10,000 and bills Receivable have been reduced by Rs 10,000.
However, for understanding of the same, we advise you to specify the relevant details related to it so that we can help you better.
Hope you understand.