Revaluation Account (1`)

1. 1. Increase and decrease in the value of assets and liabilities are recorded through _______________.

             

       

• a) Profit & Loss A/c   

• b) Profit & Loss Appropriation A/c

• c) Partners’ capital A/c

• d) Revaluation Account

2. 2. What is the primary purpose of preparing a Revaluation Account?

  

  

  

  

• a) To calculate goodwill

• b) To adjust the value of assets and liabilities

• c) To distribute profit equally

• d) To prepare the Balance sheet

3. 3. Which of the following is credited to the Revaluation Account?

  

 

  

  

• a) Increase in liability

•   b) Decrease in asset

• c) Increase in asset

• d) Provision for doubtful debt

4. What is the nature of Revaluation Account?

              

         

•   a) Real account   

• b)  Nominal Account

• c) Personal Account

• d) None of these

5. 5. Which of the following adjustment is NOT recorded in the Revaluation Account?

  

 

  

 

• a) Increase in building value

•   b) Decrease in stock value

• c) Withdrawal of capital by a partner

• d) Increase in creditors