Option (B) is correct. At the time of admission, assets are revalued to reflect their current values. When there is an increase in the value of an asset, the specific Asset account is debited to reflect the increased balance in the books. The corresponding credit entry is made to the Revaluation Account (or Profit and Loss Adjustment Account) to account for the gain. Option (A) is incorrect because the Revaluation Account is credited with the increase, not debited. Option (C) is incorrect because the capital accounts of the old partners are adjusted only for the net gain or loss on revaluation, not for the specific increase in asset value.