What will be the journal entry for the increase in liabilities at the time of reassement at the time of retirement of partner from the firm?
Answer & explanation
Correct answer: option 1
The correct answer is option 1-
Revaluation A/c Dr.
To Liabilities A/c
Revaluation Account is debited because an increase in liability is a loss to the firm. The specific Liability Account is credited to reflect the increase in liability in the books.