Question

Increase in value of a liability at the time of admission of a partner is _____________.

• A. credited to revaluation A/c
• B. debited to revaluation A/c
• C. credited to partners capital A/c
• D. debited to profit and loss A/c

Answer 1

Answer: (B)

debited to revaluation A/c

Assets and liabilities are revalued at time of admission, if liabilities are increase at time of admission, they are transferred in debit balance in revaluation a/c