A firm has an unrecorded investment of ₹50,000. What will be the Journal entry to record the unrecorded investment on the admission of a partner in a partnership firm?

Investment A/c   Dr   â‚¹50,000
      To Revaluation A/c            ₹50,000
(Unrecorded investment adjusted)

The correct answer is option 2- Investment A/c   Dr   â‚¹50,000
                                                       To Revaluation A/c            ₹50,000
                                               (Unrecorded investment adjusted)

For an unrecorded asset-
Asset A/c Dr.
   To Revaluation A/c (Gain)

For an unrecorded liability-
Revaluation A/c Dr.
   To Liability A/c (Loss)

** Unrecorded investment increases the asset with the firm that's why investments are debited and revaluation account is credited as revaluation account records on the credit side the income or gain of the firm.  So, the correct journal entry is-
Investment A/c   Dr   â‚¹50,000
      To Revaluation A/c            ₹50,000