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Home Questions 5ARJNZA5B5
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

In a firm, a new partner is admitted and for this purpose revaluation was done. It was found that a bad debt of ₹5,000 which was written off previously has been received now. How will it be treated?

Options:

Debited to Revaluation Account

Shown in new Balance sheet

Credited to Revaluation Account

Will be credited to the Old Partner's Account in the sacrifiing ratio

Correct Answer:

Credited to Revaluation Account

Explanation:

The correct answer is option 3- Credited to Revaluation Account.

Journal entry done for the recovery of bad debts-
Bank A/c Dr.  ₹5,000
   To Revaluation A/c  ₹5,000

So, Bad debt of ₹5,000 will be credited to revaluation account.

CUET Questions