Stock revaluation accounting
Adjustment and Revaluation of Assets. At the time of admission of a new partner, the assets are re-valued and liabilities are reassessed. The assets are re-valued and liabilities are reassessed so that: The assets are overstated or understated are revalued. Revaluing inventory is the process of updating an item's cost and accounting for the change in inventory value due to the change in frozen standard cost for the item. The process involves calculating the difference in inventory value, recording the difference, and updating the standard costs for the items. The manual adjustment to closing stock was performed on a monthly basis by the accountants. They ran a retrospective product valuation report, which values the stock at the date of the month end.. A journal is then put through the accounts to 1001 and 5201 so that the accounts reflect the stock value at the month end.