Question

State 'True' or 'False'

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

Answer 1

True

Explanation: The credit balance in the Revaluation Account represents the losses on revaluation of assets and liabilities. Such losses occur when the decrease in the value of assets and increase in the value of liabilities is more than the increase in the value of assets and decrease in the value of liabilities.