Question

Decrease in the value of assets should be ........ to profit and loss Adjustment account

Answer 1

Answer:

credited

Explanation:

A revaluation account or profit or loss adjustment account is opened for the purpose. This account is debited with all reduction in the value of assets and increase in liabilities and credited with increase in the value of assets and decrease in the value of liabilities.

Answer 2

A decrease in the worth of the assets is debited to the P&L adjustment account.

P&L Adjustment an account is otherwise called a revaluation account.  P&L Adjustment is prepared to adjust those errors or transactions or omissions which are left while getting ready company accounts. These changes should be possible straightforwardly to the partner capital A/C yet it appears to be a helpful method for making a P&L Adjustment account. P&L Adjustment is likewise used to disperse loss or profit among partners.