Answer:
False. If the revaluation of the asset is higher than the carrying value, the following entries will be made: Debit Asset account and Credit Revaluation reserve account. The revaluation reserve account is a balance sheet account and does not affect the capital accounts of the partners directly. However, the revaluation reserve may indirectly affect the capital accounts of the partners if the revaluation reserve is distributed to the partners or used to offset losses in the future. It is worth noting that the specific accounting treatment may vary depending on the accounting standards being used by the company.
Explanation: