Question

Give a word / term / phrase which can substitute each of the following statements :

The account which shows revaluation of assets and liabilities.

Answer 1

Revaluation or Profit and Loss Adjustment Account

Explanation: The account which shows revaluation of assets and liabilities is called Revaluation or Profit and Loss Adjustment Account. This account records the revised values of assets and liabilities, so that the deceased partner’s heir can be paid his share of profits that the firm has earned till the date of his death.