Question

Which account will be prepared to record the adjusting amount of assets and liabilities?

Options

• Profit and Loss Appropriation Account

• Profit and Loss Adjustment Account

• Realisation Account

• Revaluation Account

Answer 1

Revaluation Account

Explanation:

The value of assets and reassessment of liabilities are revalued when the profit-sharing ratio is changed, and the difference between the existing value and the revalued amount is sent to the Revaluation Account.