Question

Excess of credit side over the debit side in Revaluation Account is called:

• A. Profit
• B. Loss
• C. Receipt
• D. Expense

Hint:

Remember: In Revaluation A/c, credit excess = profit; debit excess = loss.

Answer 1

The Correct Option is A

Step 1: Understand the balance of Revaluation A/c.
- Debit side records decreases in asset values or increase in liabilities (losses).
- Credit side records increases in asset values or decrease in liabilities (gains).
Step 2: Interpretation of excess credit.
When the credit side is greater than the debit side, it means gains are more than losses, i.e., net profit on revaluation.
Step 3: Conclude.
Thus, excess of credit side over debit side is called “Profit”.
Final Answer: \[ \boxed{\text{Profit}} \]