Admission/ Revaluation Account

1.What is the purpose of preparing the Revaluation Account during admission of a partner?

• a)  To adjust the goodwill.

• b)  To record changes in the value of assets and liabilities.

• c)  To determine the profit-sharing ratio.

• d)  To calculate the new partner’s capital.

2. 2. Which of the following is debited to the Revaluation Account?
   
   
   

• a)  Increase in the value of an asset.

• b)  Decrease in the value of a liability.

• c)  Decrease in the value of an asset.

• d)  Admission of a partner’s capital.

3. The profit or loss on revaluation is shared among the old partners in the:

• a)  New profit-sharing ratio.

• b)  Old profit-sharing ratio.

• c)  Sacrificing ratio.

• d)  Equal ratio.

4. What is the nature of Revaluation Account?

                 

          

• a) Real account  

• b)  Nominal Account

• c) Personal Account

• d) None of these

5. 5. Unrecorded assets discovered during the admission process are:
   
   
   
   

• 5. a) Debited to Revaluation Account.

• 5. b) Credited to Revaluation Account.

• 5. c) Ignored in the Revaluation Account.

• 5. d) Shown as a goodwill adjustment.