Preparation of Revaluation Account And Balance Sheet - SS2 Accounting Lesson Note
Question:
Use the following transactions from the partnership of TOM and GREGS' PHARMACY to prepare:
-
Revaluation account
-
Balance sheet of the partners
TRIAL BALANCE OF TOM AND GREGS' PHARMACY FOR THE YEAR ENDED ON 31 DECEMBER
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Cash |
10,000 |
|
|
Inventory |
40,000 |
|
|
Furniture |
20,000 |
|
|
Accounts Receivable |
30,000 |
|
|
Accounts Payable |
15,000 |
|
|
Capital – Tom |
50,000 |
|
|
Capital – Greg |
30,000 |
|
|
Sales |
70,000 |
|
|
Cost of Goods Sold |
35,000 |
|
|
Rent Expense |
5,000 |
|
|
Total |
190,000 |
85,000 |
Answer:
REVALUATION ACCOUNT OF TOM AND GREGS' PHARMACY
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Inventory Furniture Total |
20,000 5,000 25,000 |
|
BALANCE SHEET OF TOM AND GREGS' PHARMACY AS OF 31 DECEMBER
Assets ₦
Cash 10000
Furniture 25000
Inventory 60000
Accounts receivable 30000
Total Asset 125000
LIABILITIES AND PARTNERS' EQUITY
Accounts payable 15000
Total Liabilities 15000
Tom's capital 50000
Greg's capital 30000
Revaluation 25000
Total Equity 105000
Total Liabilities and Partner's Equity 950000