Question

Which of these statements is not true?

• A. Accumulated profit and loss, General reserve are transferred to old partners capital account
• B. If assets and liabilities are to be shown in the balance sheet at old value, Memorandum Revaluation account is opened
• C. Profit of revaluation is transferred to the capital account of all partners in equal ratio
• D. Revaluation account is a nominal account

Answer 1

The correct option is C Profit of revaluation is transferred to the capital account of all partners in equal ratio

Balance of profit and loss are transferred to revaluation a/c, so profit of revaluation is transferred to the capital account of all partner in a equal ratio.