Assertion: Revaluation account is prepared at the time of dissolution of the firm.
Reasoning: At the time of dissolution of a firm, capitals of the partners are paid off only if any balance is left with the firm after payment of partners loans.
Answer & explanation
Correct answer: option 4
Realisation account is prepared at the time of dissolution of the partnership firm not the revaluation account. Revaluation account is prepared at the time of reconstitution of partnership firm.