Question

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​

Answer 1

Answer:

REFER MY EXPLANATION

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