Question

The account which is prepared to adjust the increase or decrease in the value of assets at the time of admission of a partner is called:

पर्याय

• Realisation Account

• Revaluation Account

• Profit and Loss Account

• None of these

Answer 1

Revaluation Account

Explanation:

The Revaluation Account is set up to compensate for the growth or reduction in the values of assets and liabilities at the time of a partner's admission.

The Realisation Account is prepared at the moment of the firm's dissolution.

Regardless of the firm's reconstitution, the profit and loss account is prepared when the final accounts are prepared.