At the time of admission of a partner, which item is generally recorded on the debit side of the Revaluation Account?

Correct answer: Decrease in the value of an asset

A decrease in the value of an asset creates a loss on revaluation, so it is recorded on the debit side of the Revaluation Account. In contrast, an increase in an asset and a decrease in a liability are gains and are recorded on the credit side. An unrecorded asset is also generally credited. Exam tip: asset decreases and liability increases are debited; asset increases and liability decreases are credited.