3.1. DERECHO REGISTRAL
3.1.2. PRINCIPIOS DEL DERECHO REGISTRAL
Dr. REVALUATION ACCOUNT Cr.
Decrease in value of Assets
Increase in value of Liabilities + Provision
Increase in value of Assets
Decrease in value of Liabilities + Provision
Any Assets or Liabilities Increase by --- Decrease by --- Same Amount to be Shown in Revaluation Account
Any Assets or liabilities Increase up to ---
Decrease up ---
Increase at --- Decrease at ---
Brought up to --- Brought up to ---
Then compare with old figure and put the difference amount only in Revaluation Account
Un expired Insurance, Accrued Income --- Revaluation A/c Cr. Side & balance sheet assets sideRevaluation A/c Dr. side & balance sheet Liability Side .
Liability OLD BALANCE SHEET Assets
Machinery 30,000
Furniture 20,000 Machinery is under valued by Rs.5,000.
Furniture is over valued by Rs.3,000.
Dr. REVALUATION ACCOUNT Cr.
Furniture 3,000 Machinery 5,000 NEW BALANCE SHEET
Machinery 35,000 Furniture 17,000 Liability OLD BALANCE SHEET Assets
Debtors 30,000
Less : Provision for B/D 2,000 28,000 1. Provision for bad debt increased by Rs.2,600
Liabilities New balance sheet Assets Debtors 30,000
(-)Pro. For b/d 4,600 25,400
2. Provision for bad debts increase up to Rs.2, 600.
3. Provision for bad debts decreased by Rs.1, 200.
4. Provision for bad debts
decreased up to Rs.1,300.
5. Provision for bad debts brought up to 5% of debtors.
debtors = 30,000 and Provision for b/d = 5% of 30,000=1,500 Dr. REVALUATION ACCOUNT Cr.
Provision for b/d 2,600
Liabilities New balance sheet Assets Debtors 30,000
(-) Pro for b/d 2,600 27,400 Dr. Revaluation Account Cr.
Provision for b/d 600
Dr. Revaluation Account Cr.
Pro for b/d 1,200 Liabilities New balance sheet Assets Debtors 30,000
(-) Pro for b/d 800 29,200 Dr. Revaluation Account Cr.
Pro for b/d 700
Liabilities New balance sheet Assets Debtors 30,000
(-) Pro for b/d 1,300 28,700
Dr. Revaluation Account Cr. Pro for b/d 500
Liabilities New balance sheet Assets Debtors 30,000
6. Existing Provision for bad debts increase by 30%.
7.
Provision for bad debts is not necessary.(All debtors are good)
8. Provision for bad debts was found to be excess by Rs.400.
When any unrecorded Assets realized:
Dr. Revaluation Account Cr. Cash A/c (unrecorded Assets sold ) --- When any unrecorded Liabilities paid:
Dr. Revaluation Account Cr. Cash A/c (unrecorded Liabilities paid) ---
Investment worth Rs.2, 000 not mentioned in the Balance sheet were taken into account:
(a) Investment worth Rs.12, 000 was taken over by A and B in ratio of 3:2. A’s Capital A/c ………..Dr. Rs.7, 200
B’s Capital A/c ……….. Dr. Rs.4, 800 Investment A/c 12,000
(b) A & B took over investment at Rs.12,000 in the ratio of 3:2.
Dr. Revaluation Account Cr. Investment A/c 8,000
A’s Capital A/c ………..Dr Rs.7, 200
B’s Capital A/c ……….. Dr. Rs.4, 800
Investment A/c 12,000
(i) B took over machine at Rs.34, 000. Dr. Revaluation Account Cr.
Pro for b/d 600
Liabilities New balance sheet Assets Debtors 30,000
(-) Pro for b/d 2,600 27,400 Dr. Revaluation Account Cr.
Pro for b/d 2,000
Liabilities New balance sheet Assets Debtors 30,000
Dr. Revaluation Account Cr. Pro for b/d 400
Liabilities New balance sheet Assets Debtors 30,000
(-) Pro for b/d 1,600 28,400
Dr. Revaluation Account Cr. Investment A/c 2,000
Liabilities New balance sheet Assets Investment A/c 2,000 Liabilities Old balance sheet Assets
Investment A/c 20,000
Liabilities New balance sheet Assets Investment A/c 8,000
Liabilities New balance sheet Assets Investment XXX
Liabilities Old balance sheet Assets Machinery 30,000
B’s Capital A/c ……… Dr. 34,000
Machinery A/c 34,000
(ii) B took over machine at Rs.25, 000.
B’s Capital A/c ……… Dr. 25,000 Revaluation Account
Machinery A/c 25,000 Machinery A/c 5,000
Accrued income not appearing in the books is Rs.100.
It was found that there was a liability for Rs.1,500 for goods received but not recorded in books.
Out of insurance Premium which was debited to P
& L A/c Rs.1, 000 be carried forward as unexpired insurance
Provision for discount of 2.5% on Creditors be made.
A and B are partners in the ratio of 3:2. C 1/6.
Claim on account of Workmen Compensation is estimated at Rs.1,300. Workmen Compensation Fund A/c ………Dr.700
A’s Capital A/c 420 B’s Capital A/c 280 (This entry is done in the ratio of 3:2)
Liabilities New balance sheet Assets Machinery XXX
Liabilities balance sheet Assets Machinery Nil
Dr. Revaluation Account Cr. Accrued income 100
Liabilities New balance sheet Assets Accrued income 100
Dr. Revaluation Account Cr.
Creditors 1,500
Liabilities New balance sheet Assets Creditors ---
Add: liab. for goods
Received 1,5000
Dr. Revaluation Account Cr. unexpired insurance 1,000
Liabilities New balance sheet Assets unexpired insurance 1,000 Liabilities Old balance sheet Assets
Creditors 10,000
Dr. Revaluation Account Cr. Prov. for dis. on Crs. 250
Liabilities New balance sheet Assets Creditors 10,000
(-) Pro for Crs. 250 9, 750
Liabilities Old balance sheet Assets Workmen Compensation Fund 2,000
Liabilities New balance sheet Assets
Workmen Compensation Fund 1,300
Liabilities Old balance sheet Assets Workmen Compensation Fund 5,000
Claim on account of Workmen Compensation is estimated at Rs.8, 000.
No adjustment of claim of Workmen’s Compensation. Workmen Compensation Fund A/c ………Dr.5,000 A’s Capital A/c 3,000
B’s Capital A/c 2,000
(This entry is done in the old ratio of 3:2)
X, an old customer whose account was written off as bad has premium to pay Rs.350 in settlement of his full debt.
(i) A agrees to pay creditors:
Creditors A/c …….. Dr.4,000 A’s Capital A/c 4,000
(ii) Outstanding Expenses Amount Rs.2,000 paid by B.
Outstanding Expenses A/c …..Dr.2,000 B’s Capital A/c 2,000
(iii) Bank Loan would be paid off.
Bank loan A/c ……. Dr. 4,000
Cash A/c 4,000
A:B = 3:2. C is admitted for 1/6th Share .
A joint policy for Rs.50,000 was taken out by A & B, on which premium totaling Rs.10,000 has been paid, has a surrender value of Rs.6,000.
Joint life policy A/c ……..Dr.6,000 A’s Capital A/c 3,600
B’s Capital A/c 2,400 (This entry is done in the ratio of 3:2. old ratio) Dr. Revaluation Account Cr.
Workmen Compensation Fund 3,000
Liabilities New balance sheet Assets
Workmen Compensation Fund 8,000
Liabilities Old balance sheet Assets Workmen Compensation Fund 5,000
Liabilities New balance sheet Assets
Workmen Compensation Fund X
Dr. Revaluation Account Cr.
Debtors(bad debts recovered ) 350 Liabilities New balance sheet Assets Debtors
Add: 350 Liabilities Old balance sheet Assets
Bank loan 2,000
Outstanding Expenses 7,000 Creditors 4,000
Liabilities New balance sheet Assets
Creditors XXX
Bank loan 2,000 Outstanding Expenses 7,000
Liabilities New balance sheet Assets Outstanding Expenses 5,000
Bank loan 2,000 Creditors 4,000
Liabilities New balance sheet Assets Bank loan XXX
Outstanding Expenses 7,000 Creditors 4,000
Liabilities New balance sheet Assets Joint life policy 6,000
A:B = 3:2. C is admitted for 1/6th Share .
A joint policy for Rs.50,000 was taken out by A & B, on which premium totaling Rs.10,000 have been paid has a surrender value of Rs.6,000.JLP is not to appear in new balance sheet . (They decided not to keep any account in books in respect of Joint life policy)
C’s capital A/c ………..Dr. 1,000 A’s Capital A/c 600 B’s Capital A/c 400
(Being adjustment entry for surrender value of Joint life policy in S.R.)
It was found that creditors included a sum of 1,400 which was not to be paid and hence they should be written back. (An unclaimed Liabilities for Rs.1,400 should be written back)
Liabilities Against accident fund is estimated to be Rs.10,000.
Interest accrued on investment Rs.2,000.
A & B are partner in the ratio 3:2.
Half of the investment were to be over by A and B in their profit sharing ratio at book value . Remaining investment are valued at Rs.13,000.
A’s Capital A/c 6,000 B’s Capital A/c 4,000
investment A/c 10,000
Rs.3,600 for damages claimed by a customer had been disputed by a firm. It was settled at Rs.1,500 by a compromise between the customer and the firm:
Liabilities Old balance sheet Assets Sundry Creditors 15,000