On the admission of a new partner, an increase in the value of assets is debited to:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Assets account
An increase in the value of an asset is a gain to the old partners. The asset account is debited to raise its balance, and the Revaluation Account is credited with the gain: Asset A/c Dr. To Revaluation A/c.
NCERT (2026-27 edition):
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