Question

Which of the following would affect the Revaluation Account at the time of admission of a partner?
(A) Increase in assets
(B) Drawings against capital
(C) Recording of unrecorded assets
(D) Decrease in liabilities

• A. (A), (B), and (C) only
• B. (A), (B), and (D) only
• C. (A), (C), and (D) only
• D. (B), (C), and (D) only

Answer 1

The Correct Option is C

Increase in assets, recording of unrecorded assets, and decrease in liabilities all impact the Revaluation Account during admission of a new partner.
Hence, the correct answer is Option 3.