Practicing Success
Practicing Success
CUET Preparation Today
There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below. Assertion(A): If the amount of any asset is understated, then the revaluation account will be debited to restore the asset amount to its actual value. |
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). Assertion (A) is true but Reason (R) is False. Assertion (A) is false but Reason (R) is true. |
Assertion (A) is false but Reason (R) is true. |
The correct answer is option 4- Assertion (A) is false but Reason (R) is true. Assertion(A): If the amount of any asset is understated, then the revaluation account will be debited to restore the asset amount to its actual value. THIS IS FALSE. If any amount of asset is understated then the revaluation account will be credited to restore the asset to its actual value because the increase in the value of an asset is debited. Journal entry for this Debit asset account and credit revaluation account. Reason(R): Increase in the value of assets is profit for the firm. THIS IS TRUE. Any increase in the value of an asset is the profit for the firm as it increases the asset value in the firm. Thus, the correct answer is assertion is false and reason is true. |
