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Home Questions SCZ6E8BK3P
Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
Assertion (A): An increase in the value of assets and a decrease in the value of the liability at the time of admission of a partner is debited to the Revaluation Account.
Reason (R): Revaluation Account is nominal in nature.
Options:
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct.
Correct Answer:
Assertion (A) is not true but Reasoning (R) is correct.
Explanation:
Increase in value of assets and decrease in value of liabilities are credited to Revaluation A/c. Thus Assertion is false. The Revaluation Account is a nominal account. Thus reason is true.

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