Question

Revaluation Account is

• A. Personal Account
• B. Real Account
• C. Nominal Account
• D. None of these

Hint:

Revaluation Account is a Real Account that tracks the revaluation of assets and liabilities.

Answer 1

The Correct Option is B

Step 1: Understanding Revaluation Account.
A Revaluation Account is used to record the changes in the value of assets and liabilities during the revaluation process. It is classified as a Real Account, as it deals with tangible assets and liabilities.
Step 2: Analyzing the options.
- (A) Personal Account: Personal accounts deal with individuals, companies, and organizations, which is not the case for a Revaluation Account.
- (B) Real Account: This is correct. A Revaluation Account is classified as a Real Account because it tracks the value of assets and liabilities.
- (C) Nominal Account: Nominal accounts deal with expenses, incomes, losses, and gains, but not with asset or liability values.
- (D) None of these: This is incorrect, as (B) Real Account is the correct answer.
Step 3: Conclusion.
The correct answer is (B) Real Account, as the Revaluation Account is classified as a Real Account.
Final Answer: The correct answer is (B) Real Account.