Question

what means revoluation account? why is it prepared? how it is perpared? what journal entries passed regarding revoluation account?​

Answer 1

Answer:

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.