An increase in liability at the time of death of a partner in a partnership firm is:

Debited to revaluation A/c

The correct answer is option 1- Debited to revaluation A/c.

An increase in liability at the time of death of a partner in a partnership firm is debited to the revaluation A/c.

The following journal entries are passed in case of decrease and increase in amount of liabilities:

* For increase in the amount of liabilities
   Revaluation A/c Dr.
        To Liabilities A/c (Individually)
  (Increase in the amount of liabilities)

* For decrease in the amount of liabilities
   Liabilities A/c’s (Individually) Dr.
        To Revaluation A/c
(Decrease in the amount of liabilities)