Question : If partners decided not to change book value of assets and liabilities on admission of new partners, then account prepared to adjust profit and loss arising on account of change in value of assets and liabilities is

Option 1: Profit and loss adjustment account

Option 2: Revaluation account

Option 3: Memorandum revaluation account

Option 4: None of the above

Question : -----------------account is prepared at the time of dissolution of the partnership while ------------------account is prepared at the time of dissolution of the partnership firm.

Option 1: revaluation account and realisation account

Option 2: realisation account and revaluation account

Option 3: revaluation account and revaluation account

Option 4: Realisation account and realisation account

Question : -----------------account is prepared at the time of dissolution of the partnership while ------------------account is prepared at the time of dissolution of the partnership firm.

Option 1: revaluation account and realisation account

Option 2: realisation account and revaluation account

Option 3: revaluation account and revaluation account

Option 4: Realisation account and realisation account

Question : If Memorandum revaluation account is prepared, Assets and liabilities will appear in balance sheet at

Option 1: New values

Option 2: Old values

Option 3: Cost

Option 4: None of the above

Question : Given below are two statements, one labelled as Assertion (A) and the other labeled as Reason (R): 

Assertion (A): Revaluation A/c is prepared at the time of Admission of a partner.  

Reason (R): The profit or loss on the revaluation of assets and liabilities, on reconstitution of firm, is related to old partners in their old ratio. 

 In the context of the above two statements, which of the following is correct? 

Codes:

Option 1: Both (A) and (R) are correct and (R) is the correct Reason of (A). 

Option 2: Both (A) and (R) are correct but (R) is not the correct Reason of (A). 

Option 3: Only (R) is correct. 

Option 4: Both (A) and (R) are wrong.