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Zorluk: Çok zorRevaluation of Assets and Liabilities

Fatima, Usman, and Segun are partners sharing profits and losses in the ratio 5:3:25:3:2 respectively. On 31st December 2025, they agreed to revalue the firm's assets and liabilities upon a structural reorganization. The revaluation details are as follows:
- Building with a book value of ₦50,000\text{₦}50,000 is revalued upwards by 20%20\%.
- Furniture with a book value of ₦20,000\text{₦}20,000 is written down to ₦15,000\text{₦}15,000.
- Provision for doubtful debts, currently standing at ₦800\text{₦}800, is to be adjusted to 5%5\% of total trade debtors of ₦30,000\text{₦}30,000.
- An unrecorded accrued electricity bill of ₦1,300\text{₦}1,300 is to be recognized.
- Inventory valued at ₦18,000\text{₦}18,000 includes damaged items costed at ₦3,000\text{₦}3,000, which can now be sold for only ₦1,000\text{₦}1,000.

What is Segun's share of the net revaluation profit or loss?

  1. ₦200\text{₦}200 profit credited to Segun's capital accountCevap
  2. B
    ₦200\text{₦}200 loss debited to Segun's capital account
  3. C
    ₦160\text{₦}160 loss debited to Segun's capital account
  4. D
    ₦300\text{₦}300 profit credited to Segun's capital account

Cevap

₦200\text{₦}200 profit credited to Segun's capital account
The correct answer reflects a net revaluation profit of ₦1,000\text{₦}1,000 calculated by subtracting total revaluation losses of ₦9,000\text{₦}9,000 (Furniture ₦5,000\text{₦}5,000, Provision Increase ₦700\text{₦}700, Accrued Liability ₦1,300\text{₦}1,300, Inventory Write-down ₦2,000\text{₦}2,000) from the building appreciation gain of ₦10,000\text{₦}10,000. Segun's share under the 5:3:25:3:2 ratio is 210×₦1,000=₦200\frac{2}{10} \times \text{₦}1,000 = \text{₦}200, which is credited to Segun's capital account.

Adım Adım Çözüm

1
Calculate individual revaluation gain and loss amounts
Building Gain = 20%×₦50,000=₦10,00020\% \times \text{₦}50,000 = \text{₦}10,000.
Furniture Loss = ₦20,000−₦15,000=₦5,000\text{₦}20,000 - \text{₦}15,000 = \text{₦}5,000.
Increase in Provision for Doubtful Debts = (5%×₦30,000)−₦800=₦1,500−₦800=₦700(5\% \times \text{₦}30,000) - \text{₦}800 = \text{₦}1,500 - \text{₦}800 = \text{₦}700.
Accrued Electricity Liability Loss = ₦1,300\text{₦}1,300.
Inventory Loss = ₦3,000−₦1,000=₦2,000\text{₦}3,000 - \text{₦}1,000 = \text{₦}2,000.
Revaluation gains increase asset values or reduce liabilities, whereas revaluation losses decrease asset values or create/increase liabilities.
2
Compute total revaluation gains, total losses, and net revaluation profit or loss
Total Revaluation Gains = ₦10,000\text{₦}10,000.
Total Revaluation Losses = ₦5,000+₦700+₦1,300+₦2,000=₦9,000\text{₦}5,000 + \text{₦}700 + \text{₦}1,300 + \text{₦}2,000 = \text{₦}9,000.
Net Revaluation Profit = ₦10,000−₦9,000=₦1,000\text{₦}10,000 - \text{₦}9,000 = \text{₦}1,000.
Net revaluation profit is determined by taking total credits (gains) minus total debits (losses) in the Revaluation Account.
3
Apportion net revaluation profit to Segun using the old ratio
Segun's share = 25+3+2×₦1,000=210×₦1,000=₦200\frac{2}{5+3+2} \times \text{₦}1,000 = \frac{2}{10} \times \text{₦}1,000 = \text{₦}200 profit.
Revaluation profit belongs to existing partners in their existing profit and loss sharing ratio and is credited to their respective capital accounts.

Anahtar Kavram

Revaluation of Assets and Liabilities in Partnership
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Revaluation of Assets and Liabilities

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