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mediumMCQCUET Accountancy 2025 2 June Shift 22026CUET Accountancy
1 mark

Which of the following statements is true regarding a Revaluation Account?

  1. A
    It is a nominal account, and it is credited for the decrease in value of an asset.
  2. B
    It is a real account, and it is debited for the decrease in value of an asset.
  3. C
    It is a real account, and it is credited for the decrease in value of a liability.
  4. D
    It is a nominal account, and it is debited for the decrease in value of an asset.

Solution & Step-by-step Explanation

A Revaluation Account is a nominal account because its primary purpose is to determine profit or loss. It follows the fundamental rule of nominal accounts: debit all losses and expenses, and credit all gains and incomes. A decrease in the value of an asset represents a loss, so it must be debited to the Revaluation Account.

Practice this question

Try it yourself before checking the explanation above.

Which of the following statements is true regarding a Revaluation Account?
A
It is a nominal account, and it is credited for the decrease in value of an asset.
B
It is a real account, and it is debited for the decrease in value of an asset.
C
It is a real account, and it is credited for the decrease in value of a liability.
D
It is a nominal account, and it is debited for the decrease in value of an asset.

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