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welcome to contacts in this lesson were going to be looking at how to do the valuation account in the general ledger Im going to do the valuation account of a partnerships so were going to go through a thorough example to show you how to go about doing that what is the valuation account this is an account and buy account were talking about the t account that is the general ledger account where we determine the fair value of the net assets of the partnership and transfer the difference between the fair value and the book value of the net assets to capital accounts of the partners just before a change in the ownership structure of the partnership okay so we do the valuation account to account for the differences between what the fair value is for those assets and what the book value is for those assets and we transfer those differences to the capital account of the current partners before there is a change in the ownership structure of the partnership okay this is done in order to en
