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Revaluation account is operated to find out gain or loss at the time of: (1 MARK) a. Admission of a partner b. Retirement of a partner c. Death of a partner d. All of above?
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Revaluation account is operated to find out gain or loss at the time o...
Revaluation Account in Partnership
Revaluation account is a nominal account prepared at the time of admission, retirement, or death of a partner. It is used to ascertain the gain or loss on revaluation of assets and liabilities of the partnership firm.
Admission of a partner
When a new partner is admitted to the firm, the assets and liabilities of the firm are revalued. The difference between the existing value and the revalued value is recorded in the revaluation account. If the revalued value is higher than the existing value, there is a profit, and if the revalued value is lower than the existing value, there is a loss.
Retirement of a partner
At the time of retirement of a partner, the assets and liabilities of the firm are revalued to determine the value of the share of the retiring partner. The difference between the existing value and the revalued value is recorded in the revaluation account. If the revalued value is higher than the existing value, there is a profit, and if the revalued value is lower than the existing value, there is a loss.
Death of a partner
In the event of the death of a partner, the assets and liabilities of the firm are revalued to determine the value of the share of the deceased partner. The difference between the existing value and the revalued value is recorded in the revaluation account. If the revalued value is higher than the existing value, there is a profit, and if the revalued value is lower than the existing value, there is a loss.
Conclusion
In conclusion, the revaluation account is used to determine the gain or loss on the revaluation of assets and liabilities of the firm at the time of admission, retirement or death of a partner. It helps to adjust the capital accounts of the partners and maintain the financial stability of the partnership firm.
Revaluation account is a nominal account prepared at the time of admission, retirement, or death of a partner. It is used to ascertain the gain or loss on revaluation of assets and liabilities of the partnership firm.
Admission of a partner
When a new partner is admitted to the firm, the assets and liabilities of the firm are revalued. The difference between the existing value and the revalued value is recorded in the revaluation account. If the revalued value is higher than the existing value, there is a profit, and if the revalued value is lower than the existing value, there is a loss.
Retirement of a partner
At the time of retirement of a partner, the assets and liabilities of the firm are revalued to determine the value of the share of the retiring partner. The difference between the existing value and the revalued value is recorded in the revaluation account. If the revalued value is higher than the existing value, there is a profit, and if the revalued value is lower than the existing value, there is a loss.
Death of a partner
In the event of the death of a partner, the assets and liabilities of the firm are revalued to determine the value of the share of the deceased partner. The difference between the existing value and the revalued value is recorded in the revaluation account. If the revalued value is higher than the existing value, there is a profit, and if the revalued value is lower than the existing value, there is a loss.
Conclusion
In conclusion, the revaluation account is used to determine the gain or loss on the revaluation of assets and liabilities of the firm at the time of admission, retirement or death of a partner. It helps to adjust the capital accounts of the partners and maintain the financial stability of the partnership firm.
Community Answer
Revaluation account is operated to find out gain or loss at the time o...
Option d.all of above the main purpose of preparing a revaluation acc. is to find out the decreasing or increasing value of assets and liabilities when a partner is admit, retired or dead. so revaluation account is prepared in all of above.
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Revaluation account is operated to find out gain or loss at the time of: (1 MARK) a. Admission of a partner b. Retirement of a partner c. Death of a partner d. All of above?
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Revaluation account is operated to find out gain or loss at the time of: (1 MARK) a. Admission of a partner b. Retirement of a partner c. Death of a partner d. All of above? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Revaluation account is operated to find out gain or loss at the time of: (1 MARK) a. Admission of a partner b. Retirement of a partner c. Death of a partner d. All of above? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Revaluation account is operated to find out gain or loss at the time of: (1 MARK) a. Admission of a partner b. Retirement of a partner c. Death of a partner d. All of above?.
Revaluation account is operated to find out gain or loss at the time of: (1 MARK) a. Admission of a partner b. Retirement of a partner c. Death of a partner d. All of above? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Revaluation account is operated to find out gain or loss at the time of: (1 MARK) a. Admission of a partner b. Retirement of a partner c. Death of a partner d. All of above? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Revaluation account is operated to find out gain or loss at the time of: (1 MARK) a. Admission of a partner b. Retirement of a partner c. Death of a partner d. All of above?.
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