Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
Revaluation Account or Profit and Loss Adjustment A/c is which type of account?
Options:
Real Account
Personal Account
Nominal Account
Asset Account
Correct Answer:
Nominal Account
Explanation:
Revaluation account is opened by the firm to record the gains and losses arising from revaluation of assets and reassessment of liabilities at the time of reconstitution of the firm. Hence, the output is either a profit or a loss, so it is a nominal account.