Partnership Revaluation Quiz

Which of the following accounts is used to record changes in the value of assets and liabilities during a change in partnership?

• Realisation Account

• Revaluation Account

• Capital Account

• Profit and Loss Account

When revaluing assets and liabilities, any increase in asset value is:

• Debited to Revaluation Account

• Credited to Revaluation Account

• Debited to Asset Account only

• Transferred to Goodwill Account

A decrease in the value of stock should be:

• Debited to Stock Account

• Credited to Revaluation Account

• Debited to Revaluation Account

• Ignored

A gain on revaluation is:

• Shared among all partners in new ratio

• Shared equally

• Shared among old partners in the old ratio

• Credited to the new partner only

Why is the revaluation account prepared?

• To adjust liabilities only

• To calculate depreciation

• To reflect the fair value of assets/liabilities at a change in partnership

• To close capital accounts

An unrecorded liability discovered during revaluation is:

• Debited to Liability Account

• Credited to Capital Account

• Debited to Revaluation Account

• Credited to Revaluation Account

When a partner retires, the Revaluation Account ensures:

• The retiring partner bears future expenses

• The business restarts

• The partner gets a fair value of his share

• No changes occur

Which of the following will appear on the credit side of a Revaluation Account?

• Increase in provision for doubtful debts

• Increase in stock value

• Decrease in fixed asset value

• Recognition of outstanding expenses

If old partners gain from revaluation, where is the gain recorded?

• New partner's account

• Goodwill account

• Capital accounts of old partners

• Drawings accounts

If revaluation results in a loss, it is:

• Debited to new partner only

• Credited to the profit and loss account

• Shared by all partners in new ratio

• Debited to old partners' capital accounts