Question

increase in the value of an asset on revaluation is debited to revaluation account is it true or false​

Answer 1

Answer:

yes it is true

Explanation:

For example

Furniture is increase by 20,000

so the journal entry will be

Furniture a/c. dr 20,000

to revaluation a/c. 20,000

Hope it helps you

Answer 2

This statement is false.

Explanation:

in case, a new partner is admitted to the firm or an old partner retires or dies, we have to prepare revaluation account to record the changes in the values of fixed assets and liabilities and find out if it results in profit or loss. that profit/loss is divided among the partners as they have decided.

in case, of revaluation account, an increase in fixed assets will be credited to the revaluation account not debited. the entry will be :-

                                  fixed asset a/c     dr.       xx

                                                    to revaluation a/c      xx

any decrease in value of fixed assets will come in the debit side of revaluation a/c. in case of liabilities, increase is debited and decrease is credited.