A, B & C are partners sharing profits in the ratio of 5:4:1. Their capital accounts showing balance of ₹3,00,000, ₹1,50,000, ₹1,50,000 respectively. It is decided between partners that they will share future profits equally. Firm has the following information-

Creditors- ₹1,10,000
Salary payable- ₹30,000
O/s expenses- ₹10,000
General reserve- ₹40,000
Bank balance- ₹2,10,000
Sundry debtors- ₹1,00,000
Provision for doubtful debts- ₹10,000
Stock -₹50,000
Furniture- ₹40,000
Computers- ₹2,00,000
Vehicle- ₹2,00,000

Provision for doubtful debts is to be written back because all debtors are good. In which account and which side it will be written?

Credit side of revaluation account

The correct answer is option 2- Credit side of revaluation account.

Provision for doubtful debts is written back because all the debtors are good so there is no need of provision means it is gain for the firm so the journal entry will be-
Provision for doubtful debts Dr. 
         To Revaluation A/c
So, it is written on the credit side of revaluation account.