Assertion: 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.
Reasoning: Revaluation Account is nominal in nature.
Reasoning: Revaluation Account is nominal in nature.
Answer & explanation
Correct answer: option 4
The Revaluation account is credited with increase in the value of each asset and decrease in its liabilities because it is a gain and is debited with decrease in the value of assets and increase in its liabilities is debited to revaluation account because it is a loss. Similarly unrecorded assets are credited and unrecorded liabilities are debited to the revaluation account.