The correct answer is: D. Memorandum Revaluation A/c
A Memorandum Revaluation Account is a temporary account used to record the revaluation of assets and liabilities. It is opened when the partners agree not to alter the book value of assets and liabilities even when they agree to revalue them. The balance of the Memorandum Revaluation Account is transferred to the Profit and Loss Account at the end of the financial year.
A Revaluation Account is a permanent account used to record the revaluation of assets and liabilities. It is opened when the partners agree to alter the book value of assets and liabilities. The balance of the Revaluation Account is transferred to the Partners’ Capital Accounts.
A Goodwill Account is a permanent account used to record the goodwill arising on the admission of a new partner. It is opened when the new partner pays a premium for a share in the partnership. The balance of the Goodwill Account is transferred to the Partners’ Capital Accounts.
A Suspense Account is a temporary account used to record transactions that cannot be immediately posted to the correct account. It is opened when a transaction is not complete or when the correct account cannot be determined. The balance of the Suspense Account is transferred to the correct account at the end of the financial year.