Economics · Partnership Accounts

Arrange the following steps in the correct sequential order for preparing and adjusting the Revaluation Account during the reconstitution of a partnership firm: A. Ascertain the difference between the two sides of the account to indicate the net profit or loss on revaluation. B. Debit the account with reductions in the value of assets and increases in liabilities, and credit it with increases in asset values and decreases in liabilities. C. Transfer the resulting profit or loss to the capital accounts of old partners based on their old profit-sharing ratio. D. Open an account named Profit and Loss Adjustment Account or Revaluation Account to record profits or losses. Choose the correct answer from the options given below: