Question :
An increase in the value of assets at the time of retirement of a partner is
Option 1: credited to Revaluation Account.
Option 2:
debited to Revaluation Account.
Option 3: debited to Profit and Loss Account.
Option 4:
debited to Profit and Loss Appropriation Account.
Correct Answer: credited to Revaluation Account.
Solution : Answer = credited to Revaluation Account.
An increase in the value of assets at the time of retirement of a partner is credited to the Revaluation Account. This account is used to record any changes in the value of assets or liabilities of the partnership, ensuring that the partner's capital account reflects their share of the partnership's assets accurately. Hence, the correct option is 1.
On the retirement of a partner, unrecorded liabilities are
At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of
Question : Increases and decreases in the value of assets and liabilities are recorded through
Which of the following statement is correct?
Accumulated losses on the retirement of a partner are
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