Question

Question 7(a). Prepare the Revaluation Account of Taiwo, Kehinde and Alaba, given asset revaluations for Building, Motor vehicles, Furniture, Stock and Debtors, and the sharing of the profit on revaluation in the ratio 3:5:2.

Accepted Answer

Taiwo, Kehinde and Alaba Revaluation Account:
Dr side: Building 7,507,500; Motor vehicles 9,450,000; Furniture 3,675,000; Stock 3,150,000; Debtors 3,150,000. Total = 26,932,500.
Cr side: Capital account - Taiwo 2,625,000; Bank; Debtors; Discount on debtors (656,250 - 19,687.5 = 636,562.5); Motor vehicles 7,408,800; Building 11,812,500; Furniture 4,200,000; Stock 2,625,000. Profit on revaluation shared: Taiwo (3/10) 899,246.25, Kehinde (5/10) 1,498,743.75, Alaba (2/10) 599,497.5. Total = 26,932,500.

GCE Accounting 2024 Theory — Question 14

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