Question

increase and decrease in the value of assets and liabilities are recorded ​

Answer 1

$\bold { \red{EXPLANATION :}}$

"All the increases or decreases in the value of assets and liabilities are recorded into Revaluation Account ".

$\bold { \purple{JOURNAL \: \: ENTRIES:}}$

For an increase in the value of an asset:

Asset A/c Dr.

To Revaluation A/c

For a decrease in the value of a liability:

Liability A/c Dr.

To Revaluation A/c

For a decrease in the value of an asset:

Revaluation A/c Dr.

To Asset A/c

For an increase in the value of a liability:

Revaluation A/c Dr.

To Liability A/c