Why is revaluation account made ?

Solution :-
Revaluation Account is an account that is opened at the time of admission, retirement and death of a partner.
This account records the effect of every increase or decrease in the value of assets and liabilities of firm. The Balance of this account (which may be either profit or loss) is transferred to the Old Partners' Capital Accounts, as the new partner has no right over such profits earned prior to his/her admission.

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