6 thoughts on “Revaluation of Assets in Partnership Account”

  1. I have a question regarding assets taken over in revaluation, how would it be treated in the revaluation account. considering its most commonly treated at the level of realization account.

    1. Hi, thanks for the question but your question is still a bit unclear to me. Who is taking over the assets? Is it the partner? If the business is not planning to close down, we do not open realisation account. The most logical accounting treatments will be to open up a disposal account. Please refer to “Depreciation – Disposal account” for the entries.

      Cheers

      1. I appreciate ur response. if I may say, the question is on revaluation of partnership assets due to retirement of a partner and I due process the retiring partner took over an asset. increase in value of an asset due to revaluation is debited now then how is the asset taken over by the retiring partner going to affect the revaluation account and the retiring partner’s capital/loan account. in more clear terms I think that’s the main issue am trying to resolve.

      2. Apologies, I must have overlooked your response but what you asked will be addressed in the revaluation account and subsequently be addressed in the next post on partnership dissolution.

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