Question : Main objective for revaluing Assets and liabilities on admission is
Option 1: Assets and liabilities should appear at new values
Option 2: Any profit and losses on account of changes in value belong only to old partners
Option 3: All unrecorded assets and liabilities get recorded
Option 4: None of the above
Correct Answer: Any profit and losses on account of changes in value belong only to old partners
Solution : Answer = Any profit and losses on account of changes in value belong only to old partners
The main objective of revaluing assets and liabilities on admission is to ensure that any profit or loss resulting from changes in their values belongs solely to the existing partners. This maintains fairness in the distribution of profits and losses among the partners and prevents the new partner from bearing any undue burden. Hence, the correct option is 2.
Question : If partners decided not to change book value of assets and liabilities on admission of new partners, then account prepared to adjust profit and loss arising on account of change in value of assets and liabilities is
Question : If Memorandum revaluation account is prepared, Assets and liabilities will appear in balance sheet at
Question : Increases and decreases in the value of assets and liabilities are recorded through
Question : After revaluation is done, Assets and liabilities will appear in balance sheet at
Question : When the unrecorded asset is taken by partners, it is debited to --------------------and credited to----------------------.
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