Q25. Consider the following facts related to Revaluation Account, its adjustments and treatment of r

Q: What is the correct answer for CUET UG Accountancy Q25?

The correct answer is c. B. Revaluation Account is a Nominal Account.D. Under-valuation of Inventories is corrected on the credit side of Revaluation Account, representing an increase in asset value.E. Excess of workmen compensation claim over the reserve is debited to Revaluation A/c, indicating a loss or expense.Statements A and C are incorrect. Revaluation profit is distributed in the profit-sharing ratio, not capital

Q: Q25. Consider the following facts related to Revaluation Account, its adjustments and treatment of reserves. A. Revaluation profit is distributed in the capital ratio of the partners. B. Revaluation…

The correct answer is c. B. Revaluation Account is a Nominal Account.D. Under-valuation of Inventories is corrected on the credit side of Revaluation Account, representing an increase in asset value.E. Excess of workmen compensation claim over the reserve is debited to Revaluation A/c, indicating a loss or expense.Statements A and C are incorrect. Revaluation profit is distributed in the profit-sharing ratio, not capital

Q: What are the options for this CUET UG Accountancy question?

A. A, D and E only · B. B and D only · C. B, D and E only · D. B, C and D only

Question

Q25. Consider the following facts related to Revaluation Account, its adjustments and treatment of reserves.
A. Revaluation profit is distributed in the capital ratio of the partners.
B. Revaluation Account is considered as Nominal Account.
C. When all debtors are good, existing provision for doubtful debt is not distributed and continued in future.
D. Under-valuation of Inventories is adjusted on the credit side of Revaluation Ac.
E. Excess amount of workmen compensation claim over workmen compensation reserve is transferred to debit side of Revaluation A/c.
Choose the correct answer from the options given below:

FirstInTest · Accepted Answer

B. Revaluation Account is a Nominal Account.D. Under-valuation of Inventories is corrected on the credit side of Revaluation Account, representing an increase in asset value.E. Excess of workmen compensation claim over the reserve is debited to Revaluation A/c, indicating a loss or expense.Statements A and C are incorrect. Revaluation profit is distributed in the profit-sharing ratio, not capital ratio. If all debtors are good, the provision for doubtful debts should be written back or distributed. Therefore, B, D, and E are correct.

Answer

A, D and E only

Answer

B and D only

Answer

B, D and E only

Answer

B, C and D only

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