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If revaluation expense ₹5000 is privately paid by an old partner and the firm treats it as payable to him, what is the correct effect?

Answer and explanation

Correct answer: Debit Revaluation Account and credit that partner capital account

The expense is the firm's loss so Revaluation Account is debited. The partner who paid is owed by the firm so his capital account is credited.

Related tags

Expense Paid By PartnerRevaluationCapital CreditAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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