Which of the following are shown is Revaluation A/c?
A. Unrecorded Asset
B. Workmen Compensation Reserve
C. Decrease in fixed Asset
D. Increase in Inventory
E. Drawings of partner
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A, C and D only.
A. Unrecorded Asset- It is shown in revaluation account. Unrecorded asset is debited and revaluation account is credited.
B. Workmen Compensation Reserve- It is not shown in revaluation account. It is directly distributed between partners in their profit sharing ratio if there is no liability against it.
C. Decrease in fixed Asset- It is shown in revaluation account. Decrease in asset is credited and revaluation account is debited.
D. Increase in Inventory- It is shown in revaluation account. Increase in asset is debited and revaluation account is credited.
E. Drawings of partner- It is not shown in revaluation account. It is shown in the capital account of partners.