Question

Revaluation Account or Profit and Loss Adjustment A/c is a ______.

Options

• Real Account

• Personal Account

• Nominal Account

• Asset Account

Answer 1

Revaluation Account or Profit and Loss Adjustment A/c is a Nominal Account.

Explanation:

A Nominal Account is used to record all expenses, losses, incomes, and gains. The Revaluation Account is specifically designed to record profits and losses arising from the revaluation of assets and liabilities during the reconstitution of a partnership firm (e.g., admission, retirement, or change in profit-sharing ratio). The final balance (profit or loss) is transferred to the partners’ capital accounts, effectively closing the nominal account.