Question

Select the most appropriate answer from the alternatives given below :

Increase in the value of assets should be ___________ to profit and loss adjustment account.

Options

• debited

•  credited

• added

• none of there

Answer 1

Increase in the value of assets should be credited to profit and loss adjustment account.

Explanation: Increase in the value of assets represents appreciation and is a gain for the firm. Therefore, the increased value (of asset) is shown on credit side of the Revaluation Account.