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easyMCQCUET UG 2024 Accountancy Question Paper (17-May-2024) (Shift 3)2026Accountancy
1 mark

Which of the following would affect the Revaluation Account at the time of reconstitution of a partnership firm?

  1. A
    Increase in assets
  2. B
    Drawings against capital
  3. C
    Interest on capital
  4. D
    Partner'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.

Practice this question

Try it yourself before checking the explanation above.

Which of the following would affect the Revaluation Account at the time of reconstitution of a partnership firm?
A
Increase in assets
B
Drawings against capital
C
Interest on capital
D
Partner's salary

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