Question

7. Decrease in liabilities at the time of retirement of a partner is
al credited to Revaluation Account
(b) debited to Revaluation Account
(c) debited to Profit and Loss Account.
(d) debited to Profit and Loss Appropriation Account​

Answer 1

Answer:

(B). Debited to revaluation account.

Explanation:

The retiring partner has the right to share the increase or decrease in the value of assets and liabilities of the firm during the retirement period.

Therefore, at time of retirement of partner if liabilities are decreased then it is debited to Revaluation Account.

Answer 2

Answer:

created to revaluation account

Explanation:

decrease in liability is shown on credit side of revaluation account