Question

if at the time of admission there is some unrecorded liability, it will be_____
1 transfer to old partner capital
2 transfer to all partner capital
3 credited to revaluation AC
4 Debited to revaluation AC​

Answer 1

Answer:

i) Revaluation A/c        Dr.                         5000

       To Provision for doubtful debts               5000

(Being increase in liabilities recorded in the revaluation account)

(ii) Creditore A/c          Dr.                           5000

       To Revaluation A/c                                   5000

(Being increase in assets transferred to revaluation account)

(iii) Building A/c          Dr.                           40000

       To Revaluation A/c                                  40000

(Being increase in assets transferred to revaluation account)

(iv) Investment A/c   Dr.                             15000              

      To  Revaluation A/c                                    15000

(Being increase in assets transferred to revaluation account)

(v) Revaluation A/c  Dr.                                2000                

        To provision for repairs A/c                      2000

(Being increase in liabilities recorded in the revaluation account)

(vi) Revaluation A/c  Dr.                               3000

         To Creditors A/c                                       3000

(Being increase in liabilities recorded in the revaluation account)

(vii) Revaluation a/c....                               Dr.                   50000

          To A's Capital a/c                                                             25000

           To B's Capital a/c                                                            25000

(Being profit on revaluation distributed among the partners in the ratio of 1:1)

Explanation:

Answer 2

Answer:

The correct option is (4) Debited to revaluation AC.

Therefore, if at the time of admission there is some unrecorded liability, it will be Debited to revaluation AC.

Explanation:

• Revaluation accounts are nominal accounts created for the distribution and transfer of gains and losses resulting from changes in the profit-sharing ratio, partner admissions, retirement, and death, ans ad we know it as well as increases and decreases in the book value of assets and liabilities.
• Unrecorded assets, assets that increase in value, and liabilities that decline in value are all credited to the revaluation account.
• Debits to the Revaluation Account are made for decreases in asset value, increases in liability value, and unrecorded obligations.
• Assets that have been entirely written off but are still physically present in the business are referred to as unrecorded assets.
• Before they are auctioned off, there is no requirement that these assets be recorded in the books.
• Therefore, at the time of the firm's dissolution, these assets are promptly credited to the Realisation account.

• Liabilities that are not documented in the books of account are known as unrecorded liabilities. Unrecorded liabilities are treated as follows in accounting:

(A) When the unrecorded liability is paid off:

Realisation A/c Dr. Cash Acc.

(B) When a partner assumes the unrecorded responsibility

Realisation A/c Dr.

to Partners' Capital Account

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