Practicing Success
Practicing Success
CUET Preparation Today
What is the treatment of unrecorded assets and liabilities in the Revaluation Account during the admission of a new partner? |
Unrecorded assets and liabilities are transferred directly to the capital accounts of the old partners. Unrecorded assets and liabilities are not accounted for in the Revaluation Account. Unrecorded assets are credited and unrecorded liabilities are debited to the Revaluation Account. Unrecorded assets are debited and unrecorded liabilities are credited to the Revaluation Account. |
Unrecorded assets are credited and unrecorded liabilities are debited to the Revaluation Account. |
During the admission of a new partner, the Revaluation Account is used to bring unrecorded assets and liabilities into the books of the firm. Unrecorded assets are credited to the Revaluation Account, indicating their addition to the firm's books, while unrecorded liabilities are debited to the Revaluation Account, reflecting their inclusion. |
