Question :
On the retirement of a partner, unrecorded liabilities are
Option 1: debited to Revaluation Account.
Option 2:
credited to Revaluation Account.
Option 3: credited to Partner's Capitai Aceount.
Option 4: debited to Profit and Loss.
Answer (1)
25th Jan, 2024
Correct Answer: debited to Revaluation Account.
Solution : Answer = debited to Revaluation Account.
When a partner retires, any unrecorded liabilities should be debited to the Revaluation Account. This ensures that the outgoing partner is not burdened with liabilities that were not accounted for during the partnership's operation. The Revaluation Account helps adjust the partners' capital balances accurately upon retirement.
Hence, the correct option is 1.
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