stock is overvalued by 4000, will go on which side of revaluation and why?
 

Hey

Stock is overvalued by Rs 4,000, that means, Stock is now to be reduced with Rs 4,000 as the value appearing in Balance Sheet is in excess of its original value. So, in the revaluation account, Stock will appear on the debit side and in the Balance Sheet, Stock will be reduced by Rs 4,000.

For more cases like these, you may refer to the study material available on our website. Follow the link given below:
https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/partnership-accounts/reconstitutionadmission-of-a-partner/435_2430_5872#slide4_revaluation-account-cash-account-balance-sheet-and-adjustments

  • 13
It should be shown in the credit side of the balance sheet
"Asset decreases (must be shown in debit side),asset increases(must be shown in credit side)"

overvalued means it increased .subtract the amount from the balance sheet,then show
in the credit side of revaluation account since it is by 4000 
  • -3
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