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If partners want to retain the old book values of assets and liabilities but still adjust the revaluation profit or loss, which account is suitable?

Answer and explanation

Correct answer: Memorandum Revaluation Account

A Memorandum Revaluation Account records the revaluation adjustments while keeping the assets’ and liabilities’ old book values unchanged in the books. Its two parts account for the revaluation result and its reversal.

Related tags

Memorandum RevaluationBook ValuesAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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