Match List-I with List-IIList-I (Revaluation Event)List-II (Journal Entry)(A) For increase in the value of an asset(I) Revaluation A/c Dr. To Asset A/c(B) For reduction in the amount of a liability(II) Revaluation A/c Dr. To Liability A/c(C) For reduction in the value of an asset(III) Asset A/c Dr. To Revaluation A/c(D) For appreciation in the amount of a liability(IV) Liability A/c Dr. To Revaluation A/cChoose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (I), (B) - (III), (C) - (II), (D) - (IV)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
The ledger adjustments for revaluation work as follows:Increase in asset value: Gain Debit Asset, Credit Revaluation (III)Reduction in liability: Gain Debit Liability, Credit Revaluation (IV)Reduction in asset value: Loss Debit Revaluation, Credit Asset (I)Appreciation in liability: Loss Debit Revaluation, Credit Liability (II)Matches perfectly with: (A) - (III), (B) - (IV), (C) - (I), (D) - (II).