Question : If there is any unrecorded obligation/Liability at the time of admission, it will be -
Option 1: Debited to Goodwill Account
Option 2: Credited to partners’ Capital Accounts
Option 3: Credited to Revaluation Account
Option 4: Debited to Revaluation Account
Correct Answer: Debited to Revaluation Account
Solution : Revaluation accounts are nominal accounts created for the distribution and transfer of gains and losses resulting from changes in the profit-sharing ratio, partner admissions, retirement, and death, as well as increases and decreases in the book value of assets and liabilities. Unrecorded assets, assets that increase in value, and liabilities that decline in value are all credited to the revaluation account. Debits to the Revaluation Account are made for decreases in asset value, increases in liability value, and unrecorded obligations.
Hence the correct answer is option 4.
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