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.
Reason (R): Revaluation Account is nominal in nature.
Answer & explanation
Correct answer: option 4
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.