CIE Accounting Paper-1: Specimen Questions 121 - 121 of 214
Question number: 121
During the admission of the partner loss was incurred in the revaluation of assets and liability.
How is this shown in the accounts?
At the time of admission and retirement of partner it is necessary to revalue the assets and liability of the partnership firm. The liability will increase and values of assets are decreased in the case of loss on revaluation.