Match List-I with List-II
List-I
(A) A creditor of Rs. 1000 is not likely to claim his money and is to be written off.
(B) Creditors were unrecorded to the extent of Rs. 1,000.
(C) Stock is found overvalued by Rs. 4,000.
(D) Stock is found undervalued by Rs. 4,000.
List-II
(I) Revaluation A/c Dr. 1000
To Creditors A/c 1000
(II) Revaluation A/c Dr. 4000
To Stock A/c 4000
(III) Creditors A/c Dr. 1000
To Revaluation A/c 1000
(IV) Stock A/c Dr. 4000
To Revaluation A/c 4000
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A) - (III), (B) - (I), (C) - (II), (D) - (IV)
The Revaluation Account is credited with every gain (an asset rising or a liability falling) and debited with every loss (an asset falling or a liability rising, including an unrecorded liability).
(A) A creditor of Rs. 1000 is not likely to claim his money and is to be written off. — this matches (III) Creditors A/c Dr. 1000 To Revaluation A/c 1000. A liability that goes away is a gain, so Creditors is debited and Revaluation credited.
(B) Creditors were unrecorded to the extent of Rs. 1,000. — this matches (I) Revaluation A/c Dr. 1000 To Creditors A/c 1000. Bringing an unrecorded liability into the books adds to what the firm owes, a loss debited to Revaluation.
(C) Stock is found overvalued by Rs. 4,000. — this matches (II) Revaluation A/c Dr. 4000 To Stock A/c 4000. Stock has to be reduced, a loss, so Revaluation is debited and Stock credited.
(D) Stock is found undervalued by Rs. 4,000. — this matches (IV) Stock A/c Dr. 4000 To Revaluation A/c 4000. Stock has to be increased, a gain, so Stock is debited and Revaluation credited.
NCERT (2026-27 edition): |