Question

Revaluation account, buildings appreciated by 7000,provision for bad debts be made at 5 percent on debtors,5000be paid to B immediately and the balance due to him be treated as a loan carrying @6 percent per annum

Answer 1

Answer:

1)building a/c dr 7000

to revaluation a/c

2)revaluation a/c dr

to provision for bad debts