Advertisements
Advertisements
प्रश्न
State Whether the following Statement is True or False:
At the time of change in profit sharing ratio among existing partners, an unrecorded liability is credited to Revaluation Account.
चूक किंवा बरोबर
Advertisements
उत्तर
The statement is false.
Explanation:
- An unrecorded liability is a loss for the firm because it increases what the business owes.
- According to accounting rules, all losses must be debited to the Revaluation Account.
- Crediting the Revaluation Account is only done for gains (like unrecorded assets or a decrease in liabilities).
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
