At the time of retirement, if bad debts which were written off previously are now recovered, then where it is shown at the time of revaluation of assets? |
Credit side of revaluation account Debit side of revaluation account Credit side of partner's capital account Debit side of partner's capital account |
Credit side of revaluation account |
The revaluation account is credited with the increase in the value of each asset and the decrease in its liabilities. Bad debts recovered are a profit for the firm so it is credited to the revaluation account. |