If the furniture is shown as Rs. 15,000 in the balance sheet and is revalued at Rs. 12,000, then the journal entry for the same will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Revaluation account will be debited and Furniture account will be credited for Rs. 3,000.
A fall in the value of an asset is a loss on revaluation, so the Revaluation A/c is debited and the asset account is credited. The entry is passed for the amount of the fall, Rs. 15,000 − Rs. 12,000 = Rs. 3,000, and not for the new value of Rs. 12,000.
Revaluation A/c Dr. 3,000
To Furniture A/c 3,000
(Decrease in the value of furniture)
NCERT (2026-27 edition):
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