If, at the time of admission, there is some unrecorded liability, then how it will be treated?

Debited to Revaluation Account

The correct answer is option 1- Debited to Revaluation Account.

When there is an unrecorded liability at the time of admission of a partner in a partnership firm, it should be debited to the Revaluation Account.

Revaluation Account is used to adjust the values of assets and liabilities when there are changes in their values. By debiting the unrecorded liability to the Revaluation Account, there is an increase in the loss for the firm as liability is a loss of the firm.