Question

Revaluation Account is alike a:

• A. Profit and Loss Adjustment A/c
• B. Profit and Loss A/c
• C. Trading A/c
• D. Realisation A/c

Hint:

Revaluation A/c = P& L Adjustment A/c → distributes revaluation profit/loss among old partners.

Answer 1

The Correct Option is A

Step 1: Nature of Revaluation A/c.
At admission, retirement, or death of a partner, assets and liabilities are revalued. All changes are recorded in Revaluation A/c.
Step 2: Profit/Loss Adjustment.
Any profit (increase in assets or decrease in liabilities) or loss (decrease in assets or increase in liabilities) is transferred to old partners’ capital accounts.
Step 3: Conclude.
Therefore, Revaluation A/c is similar to a Profit and Loss Adjustment A/c.
Final Answer: \[ \boxed{\text{Profit and Loss Adjustment A/c}} \]