At the time of admission of a partner, reduction in the value of an asset will be debited to:
This question was previously asked in
Shift 02/06/2023 3:30 PM - 6:30 PM
A
Cash A/c
B
Partner's Capital A/c
C
Realisation A/c
D
Revaluation A/c
Correct Answer
Revaluation A/c
Detailed Explanation
At the time of admission of a partner, any reduction in the value of an asset is typically debited to the Revaluation Account. The Revaluation Account is used to record adjustments to the values of assets and liabilities to reflect their fair market values when a new partner is admitted to the partnership.
So, the correct answer is option 4: Revaluation A/c.
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