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Meaning of Retirement

Revaluation A...

Question

Revaluation Account (or alternatively Profit and Loss Adjustment Account) is a ____________ .

A

Real Account

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B

Nominal Account

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C

Personal Account

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D

None of the above

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Solution

The correct option is B Nominal Account
Revaluation account is a nominal account. For an account to be termed as nominal, there should either be an expense, gain, loss or income. Revaluation account is opened by the firm to record the gains and losses arising from revaluation of assets and reassessment of liabilities at the time of reconstitution of the firm. Hence, the output is either a profit or a loss, so it is a nominal account.

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