Assertion: Revaluation account is credited due to decrease in value of liability
REASON: Revaluation account is just like nominal account and credited with loss and expenses
a both A and B correct
b A B incorrect
c A is correct and B is false
d only B is correct
Answers
Answer:
Correct option is
C
Nominal
The term revaluation is simply means "to determine the value of assets and liabilities again". Revaluation account is prepared either at the time of retirement of a partner or admitting a partner. All the assets and liabilities are revalued and the differential amount is to be debited or credited in Revaluation Account.
Revaluation Account is Nominal In nature. If the liabilities increases and assets are decreasing, the difference amount to be debited to revaluation account as it is a loss for the firm.
If there is an Increase in Assets and Decrease in the value of Liabilities, the differential amount to be credited to revaluation account as it is a Profit for the firm.
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Answer:
Explanation:
REVALUATION ACCOUNT OR PROFIT AND LOSS ADJUSTMENT ACCOUNT
- REVALUATION ACCOUNT IS A NOMINAL ACCOUNT
- IT IS PREPARED AT THE TIME OF RECONSTITUTION OF A FIRM AND
- IT IS CREDITED WITH INCREASE IN THE VALUE OF ASSET AND DECREASE IN THE VALUE OF LIABILITY AND DEBITED WITH DECREASE IN THE VALUE OF ASSET AND INCREASE IN THE VALUE OF LIABILITY
- AND UNRECORDED ASSET WILL BE CREDITED AND UNRECORDED LIABILITY WILL BE DEBITED