Amar & Akbar were partners in a firm sharing P & L in ratio 3 : 2. Their Balance Sheet as at March 31, 2023 was as under:

They admitted Anthony as a new partner for 1/5 share which he acquired equally from Amar and Akbar.

Based on above information, answer questions.

Land & Building was to be increased to ₹3,00,000. Revaluation A/c will be _________ by _________ .

Credited by ₹50,000

The correct answer is Option (3) - Credited by ₹50,000.

Land & building = ₹250000
Revalued figure = ₹300000
Increased = 300000 - 250000
               = 50000

As value is increased so journal entry will be-
Land & Building Dr. ₹50000
    To Revaluation A/c  ₹50000

So, revaluation account will be credited by ₹50000.