Question : If the net result of revaluation is profit of Rs 12,000 and partners do not want to show assets and liabilities at new values then.
Option 1: Revaluation a/c is not prepared
Option 2: Statement showing net result for revaluation will be prepared
Option 3: Adjustment entry will be passed
Option 4: All of the above
Correct Answer: Adjustment entry will be passed
Solution : Answer = Adjustment entry will be passed.
If the partners decide not to show assets and liabilities at their new values after a revaluation resulting in a profit of Rs 12,000, adjustment entries will be passed to allocate the profit among the partners. This ensures that the profit is appropriately distributed without preparing a formal revaluation account.
Hence, the correct option is 3.
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