Question : Increases and decreases in the value of assets and liabilities are recorded through
Option 1: Profit and loss account
Option 2: Profit and loss appropriation account
Option 3: Partners capital account
Option 4: Revaluation account
Answer (1)
25th Jan, 2024
Correct Answer: Revaluation account
Solution : Answer = Revaluation Account
Increases and decreases in the value of assets and liabilities are recorded through the Revaluation Account. This account is used to adjust the book value of assets and liabilities to their current market value. Gains or losses resulting from revaluation are then transferred to the Profit and Loss Appropriation Account.
Hence, the correct option is 4.
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