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

  • 12

 (by )creditors on the credit side of the revaluation account

  • 10

credit side of the revaluation a/c because it will lead to decrease in the creditors

  • 1

it will be in the credit side as it is a decrease in liability.

  • 0

it will be in credit side  because  at revaluation a/c  ..   the following are went to credit side

1.incresa in assets

2.decrese in liability

3.un recorded assets

this cr.s  is a libility & it is falling.

  • 2

credit side because it is decrease in value of liabilities and it is profit for the firm and profit is record on cr side of revaluation a/c

  • -1
48000 of revaluation account

  • -1
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