Identify the Cases when Revaluation Account is prepared.

(A) Admission of a partner
(B) Dissolution of a partnership firm
(C) Retirement of a partner
(D) Change in the profit sharing ratio among existing partners
(E) Adjustment of Capitals of partners

Choose the correct answer from the options given below.

(A), (C) and (D) only

The correct answer is Option (1) → (A), (C) and (D) only

A revaluation account is prepared in accounting when there is a need to adjust the values of assets and liabilities to their current fair market values. This is typically done in situations where there is a change in the partnership, either due to the admission of a new partner, retirement of an existing partner, or any other circumstance that requires a reassessment of the assets and liabilities.