Decrease in assets at the time if retirement of a partner is ____… - Vidyadip

MCQ

Decrease in assets at the time if retirement of a partner is ________.

A
Credited to revaluation A/c.
✓
Debited to revaluation A/c.
C
Debited to profit and loss A/c.
D
Debited to goodwill A/c.

✓

Answer

Correct option: B.

Debited to revaluation A/c.

Revaluation account is a nominal account which is prepared at the time of admission, retirement or death of a partner to record change in the value of assets and liabilities.
Decrease in the value of assets or increase in the value of liabilities is debited to this account and increase in the value of assets and decrease in the value of liabilites is credited to this account and profikt or loss is transferred to old partners capital account in their old profit sharing ratio.

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