Question :
Which of the following statements is correct in relation with expenses on revaluation account?
Option 1: Expenses may be incurred by the firm to give effect to the change in profit-sharing ratio.
Option 2: These expenses may be incurred as remuneration to a partner or as payment to an outside party for rendering services.
Option 3: The expenses so incurred are debited to Revaluation Account being expenses relating to reconstitution of the firm.
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
All of the above statements are correct. Expenses on a revaluation account may occur due to adjustments in profit-sharing ratios, which could involve paying remuneration to partners or outside parties for their services. These expenses are debited to the Revaluation Account as they relate to the reconstitution of the firm.
Hence, the correct option is 4.
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