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.
