Which of the following is not an Asset of an enterprise? (2024)

As an expert in accounting and financial matters, I will provide a detailed analysis of the given scenario and guide you through the preparation of the Revaluation Account and Ram's Capital Account.

Firstly, let's understand the situation. Ram, Kishan, and Gopal are partners with profit-sharing ratios of 4:2:1, respectively. The balance sheet as of March 31, 2013, is given, and Ram decides to retire. The assets and liabilities are revalued, and adjustments are made accordingly.

Here is a breakdown of the key concepts and steps involved:

1. Balance Sheet Analysis:

   • Liabilities:
     • Capitals: Ram's capital is Rs 60,000, Kishan's capital is Rs 40,000, and Gopal's capital is Rs 30,000.
     • Creditors: Rs 30,000
     • Bills Payable: Rs 4,000
     • General Reserve: Rs 21,000
   • Assets:
     • Cash: Rs 14,000
     • Stock: Rs 30,000
     • Debtors: Rs 22,000
     • Building: Rs 40,000
     • Plant: Rs 53,000
     • Motor Van: Rs 26,000

2. Revaluation Adjustments:

   • Stock: Rs 24,000
   • Debtors: Rs 21,000
   • Building: Rs 45,200
   • Plant: Rs 50,000
   • Creditors: Rs 28,000

3. Adjustment for Ram's Amount:

   • Amount due to Ram is transferred to Ram's loan account.

4. Preparation of Revaluation Account:

   • List all assets and liabilities with their original values.
   • Adjust the values based on the revaluation amounts.
   • Show the increase or decrease in each item.

5. Preparation of Ram's Capital Account:

   • Start with Ram's capital as per the balance sheet.
   • Add his share of the profit or deduct his share of the loss.
   • Adjust for the revaluation amount.
   • Transfer the amount due to Ram to his loan account.

Now, let's create the Revaluation Account and Ram's Capital Account:

Revaluation Account:

| Particulars       | Amount (Rs) | Particulars       | Amount (Rs) |
|-------------------|--------------|-------------------|--------------|
| Stock             | -6,000       | Debtors           | -1,000       |
| Building          | 5,200        | Plant             | -3,000       |
| Creditors         | 2,000        |                 |              |
|                   |              | Total (Profit)    | 3,200        |

Ram's Capital Account:

| Particulars       | Amount (Rs) | Particulars       | Amount (Rs) |
|-------------------|--------------|-------------------|--------------|
| Balance b/d       | 60,000       | Profit (Reval.)   | 3,200        |
| Creditors         | -2,000       | Loan Account      | -61,200      |
|                 |              | Total             | 61,200       |

This summarizes the adjustments made during the revaluation and the impact on Ram's capital. The final amount is transferred to Ram's loan account.