Question

State Whether the following Statement is True or False:

Revaluation Account is debited from all incomes.

Answer 1

The statement is false.

Explanation:

• The Revaluation Account is a Nominal Account.
• According to nominal account rules ("Debit all expenses and losses, Credit all incomes and gains"), all incomes and increases in asset values must be credited, not debited.
• Debiting the Revaluation Account is only done for expenses, losses, and reductions in asset values.