Creditors were written back Rs. 5000.
Which side of the Revaluation a/c will this adjustment fall in?
'creditors written back' will fall on the credit side of the revaluation a/c as their is decrease in the amount of liability by 5000 and as per the specimen of revaluation a/c all the decrease in liability comes on the credit side of rev. a/c.
a specimen of revaluation a/c is shown below---
PARTICULARS | AMOUNT | PARTICULARS | AMOUNT |
To assets (individually) --decrease in value on revaluation | By assets(individually) --increase in value on revaluation | ||
To liabilitirs—increase on reassessment | By liabilities—decrease on reassessment | ||
To partners capital a/cs* --gain on revaluation. | By partners capital a/cs* --loss on revaluation. |
journal entry--
PARTICULARS | LF | DEBIT | CREDIT |
Sundry creditors a/c ……dr. To revaluation a/c (being the decrease in the value of creditors) | 5000 | 5000 |
