Practicing Success
Practicing Success
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| If at the time of admission, there is some unrecorded asset, how they will be shown in revaluation account? |
Debited to Revaluation Account Credited to revaluation account Debited to Old Partners Capital A/c Debited to all partners a/c including new one. |
| Credited to revaluation account |
| Revaluation account is a nominal account, which is prepared for the distribution and transfer of profits and losses arising due to the increase and decrease of the book value of assets and liabilities during change in profit sharing ratio, admission of a partner, retirement of a partner and death of a partner. Increase in the value of asset, unrecorded assets, decrease in the value of liabilities are credited to revaluation account and Decrease in the value of assets, Increase in the value of liabilities and Unrecorded liabilities are debited to Revaluation A/c. |
