Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

If there is any provision of doubtful debts in the firm and on the reconstitution of the firm this provision is written back since all debtors are good, then what will be done with this provision?

Options:

Debited to revaluation account

Credited to revaluation account

No treatment

Transferred to partners' capital account

Correct Answer:

Credited to revaluation account

Explanation:

For increase in the value of assets-
Assets A/c’s (Individually) Dr.
   To Revaluation A/c
(Increase in the value of asset)