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At the time of admission of a partner, the value of office equipment is increased from ₹18,000 to ₹22,000. What will be the gain from the revaluation of the asset?

Answer and explanation

Correct answer: ₹4,000

The gain on revaluation is the difference between the revised value and the old value: ₹22,000 − ₹18,000 = ₹4,000. ₹22,000 is the revised value of the equipment, not the gain. Exam tip: calculate only the increase or decrease in value as the revaluation gain or loss.

Related tags

Asset-RevaluationPartner-AdmissionAccountancy-NumericalAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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