On the admission of a partner, increase in the value of asset is debi…

The correct answer is Option (2) → Asset A/c

An increase in the value of an asset is recorded by debiting the Asset Account and crediting the Revaluation (Profit and Loss Adjustment) Account, because the gain belongs to the old partners.

Option (1) Profit and Loss adjustment A/c — Incorrect. This account is credited with the gain, not debited.

Option (3) Old Partners Capital A/c — Incorrect. The old partners are credited later with the net gain on revaluation.

Option (4) Profit and Loss Account — Incorrect. Revaluation gains do not pass through the ordinary Profit and Loss Account.