Assertion (A) : At the time of admission of a partner, a Revaluation Account is prepared.
Reasoning (R ): The firm is reconstituted, when there is a new entry of partner and all the assets and liabilities are revalued for this purpose.
Choose the correct option out of followings.
Answer & explanation
Correct answer: option 4
At the time of entry of a new partner, the firm is reconstituted and assets and liabilities are revalued, for this purpose Revaluation Account is prepared.