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:
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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