Question

The credit balance of revaluation account means loss on revaluation account. (State True or False)

Answer 1

TRUE ....

CREDIT BALANCE OF REVALUATION AC MEANS LOSS..

Answer 2

Answer:

True

Explanation:

The credit balance of revaluation account means loss on revaluation account. - True

Credit balance is referred to as profit on revaluation in the Revaluation Account. Such earnings are to be transferred in their ancient profit-sharing ratio to the capital accounts of ancient (or current) partners.

The Revaluation Account credit balance reflects the total losses on the asset and the liability revaluation. Such losses happen when there is an asset value reduction and the increase in the liability value is more than the asset value rise and the liability value reduce.