why is revaluation a/c prepared when we make the balance sheet as per all the adjustments

of the last year

Revaluation a/c is prepared to find out the true value of assets and liabilities.So whenever there a adjustments regarding regarding increase or decrease of assets and liabilities revaluation a/c has to be prepared.

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my question is that"all the adjustments regardingto the assets and liabilitiesare considered in thePL A/c then why Revaluation A/c

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in pL Ac it show's only whether a company going under profit or loss but i revalution AC it showes in depth as discress of asset and liablites

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p&l account is prepared on historic cost concept and present value is not taken for consideration. but when a partner is admitted old partners need to show through revaluation account the assets and liability at present value. u may undestand it by an example:-
suppose a and b are partners. before 20 years they started business with capital of rs. one lakh each and bought a shop for rs. one lakh. the shop is being shown for 20 years in balance sheet at historic cost of one lakh minus depreciation. its balance sheet value now after dep. is 50000.
but its present value is one crore . if revaluation a/c is not prepared and difference in the value of rs. 9950000 is not distributed by a and b and gave admission to c for equal share . c , if takes retirement on the next day, he is eligible to get back his capital as well as one third share of difference in value of shop rs 9950000. the old partners can't stop him doing so as per law and will feel cheated. to prevent from such cheating it is necessary to prepate revaluation sccount.

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Revaluation Account is prepared to know the profit/loss on revaluation of assets and liabilities. It is necessary at the time of admission or retirement of a partner
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