Which of the following would affect the Revaluation Account at the time of reconstitution of a partnership firm?
- AIncrease in assets
- BDrawings against capital
- CInterest on capital
- DPartner's salary
Solution & Step-by-step Explanation
The Revaluation Account records the re-estimation gains/losses arising from fluctuations in values of assets and liabilities during reconstitution. Therefore, an Increase in assets directly affects the Revaluation Account (credited). Other items listed are appropriations of profit and affect Partner Capital or P&L Appropriation accounts.