Question

What would be the journal entry for revaluation of an increase in the value of a liability?

पर्याय

• Revaluation A/c Dr To Liability A/c

• Liability A/c Dr To Revaluation A/c

• Cannot be determined.

• None of these

Answer 1

Revaluation A/c Dr To Liability A/c

Explanation:

Because it is again, the revaluation account is credited with increases in the value of each asset and decreases in its liabilities, and it is debited with decreases in the value of assets and increases in its liabilities, which is a loss.