Find out gain or loss of Revaluation A/c from the given information:
1. The fixed assets should be valued at Rs. 3,31,000 (book value Rs. 2,80,000).
2. A provision of 5% on sundry debtors be made doubtful debts (Debtors amounted to Rs. 90,000).
3. The value of stock be reduced to Rs. 1,12,000 (book value 1,90,000).
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Loss Rs. 31,500
The Revaluation Account is credited with every increase in an asset and debited with every decrease in an asset and every new provision. Its balance is the net gain or loss.
Gain:
Fixed assets: Rs. 3,31,000 − Rs. 2,80,000 = Rs. 51,000
Losses:
Provision for doubtful debts: 5% of Rs. 90,000 = Rs. 4,500
Stock: Rs. 1,90,000 − Rs. 1,12,000 = Rs. 78,000
Total losses = Rs. 4,500 + Rs. 78,000 = Rs. 82,500
Net result:
Rs. 51,000 − Rs. 82,500 = loss of Rs. 31,500
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
|
