At the time of Revaluation of Assets and Liabilities during admission of partner.............

Unrecorded Assets should be credited and unrecorded liabilities should be debited to Revaluation A/c

The correct answer is Option (4) → Unrecorded Assets should be debited and unrecorded liabilities should be credited to Revaluation A/c

(1) Profit or Gain transferred to sacrificing partners: The revaluation profit is not transferred to sacrificing partners but it is transferred to all partners in their old ratio.

(2) Reduction of liability should be credited to partners' capital accounts: This is shown in revaluation account as it is gain for the firm so it is shown in the credit side of the firm. It is not credited to partners capital account.

(3) Unrecorded assets and liabilities should be written off immediately: This is shown in the revaluation account.

(4) Unrecorded Assets should be credited, and unrecorded liabilities should be debited to Revaluation A/c:  Unrecorded Assets should be credited as it is a gain for the firm and unrecorded liabilities should be debited to the Revaluation A/c because it is a loss for the firm.