Question

what is Revalution Account ?

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Answer 1

Answer:

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What is meant by Revaluation Account?

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At the time of admission, a nominal account known as the revaluation account is opened to revalue and reassess the assets and the liabilities. These assets and liabilities are revalued so that there is no undue gain to the incoming partner. Any profit or loss arising from the Revaluation account is credited or debited to the old partner's capitals accounts in their old profit sharing ratio.

Answer 2

Answer:

Revaluation account is a normal account prepared for the purpose of disturbing and transforming the profit or loss arising out of increase or decrease in the book value of assets or liability of the partnership firm at the time of change in profit sharing ratio, admission of a partner and retirement of a partner.