Question

Write the word/term or phrase which can substitute each of the following statement.

The account which shows change in the values of assets.

Answer 1

Revaluation or Profit and Loss Adjustment Account

Explanation: The account which shows change in the values of assets is called Revaluation or Profit and Loss Adjustment Account. This account is opened to record the changes in the values of assets and liabilities, so that the new partner is not put to any advantage or disadvantage.