Question

12. In which of the following cases, revaluation account is credited?
(a) Decrease in value of liability
(6) Increase in value of liability
(c) Decrease in value of asset
(d) No change in value of liability​

Answer 1

Answer:

decrease in value of liability

Answer 2

Option A is correct i.e. Decrease in value of liability.

• Revaluation account is credited when there is decrease in value of liability.
• Revaluation account is a nominal account.
• Rule of nominal account is that debit all the losses and credit all the profit.  
• Revaluation account is debited when there any kind of losses which means that when there is decrease in assets and increase in liabiloty it is credited.
• Revaluation account is credited when there is profit which means that there is net increase in asset and decrease in liability.