How unrecorded assets are treated at the time of retirement of a partner?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Credited to Revaluation Account.
Revaluation account is prepared to reassess the assets and liabilities of the firm at the time of retirement or death of a partner. Unrecorded assets will be credited to Revaluation Account at the time of retirement of a partner as it is a gain for the firm. Gain of the firm is credited to revaluation account.