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

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

Credited to Revaluation Account

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