Journal entry to be passed for unrecorded assets for preparing Revaluation A/c at the time of retirement of a partner will be............
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Assets A/c Dr. To Revaluation A/c (Assets recorded)
An asset that the firm owns but has not recorded is brought into the books at its value. Recording it is a gain to the old partners, so the Revaluation Account is credited and the asset account debited: Asset A/c Dr. To Revaluation A/c. The gain then reaches the partners through the balance of the Revaluation Account, not by a direct credit to their capital accounts.
NCERT (2026-27 edition):
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