At the time of retirement of Mohan, stock is given as ₹ 60,000 in the Balance Sheet of the firm. If stock is undervalued by ₹ 10,000. the Journal entry passed for the above is:
At the time of retirement of Mohan, stock is given as ₹ 60,000 in the Balance Sheet of the firm. If stock is undervalued by ₹ 10,000. the Journal entry passed for the above is:
a)
Revaluation A/c Dr. ₹ 10,000
To Stock A/c ₹ 10,000
b)
Stock A/c Dr. ₹ 10,000
To Revaluation A/c ₹ 10,000
c)
Stock A/c Dr. ₹ 50,000
To Revaluation A/c ₹ 50,000
d)
Revaluation A/c Dr. ₹ 50,000
To Stock A/c ₹ 50,000
Anurag Pathak Changed status to publish July 2, 2023
Ans – b)
Explanation:-
An increase in assets is recorded on the credit side of the Revaluation Account.
Anurag Pathak Changed status to publish July 2, 2023
