Question

Balance in the revaluations a/c is transferred to __________.

• A. Partners fixed capital a/c
• B. Partner current capital a/c
• C. Profits and loss a/c
• D. General reserve a/c

Answer 1

Answer: (B)

Partner current capital a/c

A revaluation A/c is opened for the purpose of revaluing assets and liabilities.

This account is debited with all reduction in the value of assets and increase in liabilities, and credited with increase in the value of assets and liabilities. The difference in the two sides is revaluation profit or loss. This profit and loss is transferred to current capital accounts of old partners in old profit sharing ratio.