Where will the assets and Liabilities be shown at their revalued values after admission of a partner in the partnership firm?

New Balance Sheet

The correct answer is option 1- New Balance Sheet.

Assets and Liabilities are shown at their revalued values in the new Balance sheet after the admission of a partner in the partnership firm. A revaluation account is made to show the increase or decrease in the assets and liabilities and its gain or loss is distributed between old partners. When a new partner enter in the firm, the revalued assets and liabilities figures are considered not old ones. Assets and liabilities are shown in the balance sheet. So, the correct answer is option 1 i.e. new balance sheet. A new balance sheet means balance sheet after the admission of new partner.

OTHER OPTIONS-

• Revaluation account is made to revalue the assets and liabilities and calculate the gain or loss on revaluation.

• All partner's capital account is related with the capital balance of partners.

• Realisation account is at the time of dissolution of the partnership firm. It is made to transfer assets and liabilities and settle them.