Journal Entries for Change in PSR

Q. For an increase in the value of assets, the account is debited, and the account is credited.

1. asset
2. revaluation
3. partner's capital
4. bank

Q.

The journal entry for an increase in the value of a fixed asset is

1. Revaluation A/c Dr.

   To Partners' Capital A/c

2. Fixed Asset A/c Dr.

   To Revaluation A/c

3. Revaluation A/c Dr.

   To Fixed Assets

4. Partners' Capital A/c Dr.

   To Revaluation A/c

Q.

General Reserve is distributed among partners in the ____________ ratio.

1. none of the above

2. equal

3. new

4. old

Q. State whether Revaluation Account is debited or credited to record the increase in the amount of creditors.

Q. Why Revaluation Account is debited on transfer of gain arising from revaluation of assets and reassessment of liabilities?

Q. What is the basic difference between provision and reserve?

Q. When income is received in advance ___________ account is debited.

1. Expense
2. Profit and loss
3. Income
4. None of these.