"Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? 

Dear Student,
Here, asset (bank) and bank loan (liability), both are affected simultaneously by the same amount. Therefore, it should not be recorded in the Revaluation A/c.

When bank loan is paid-off, Bank A/c is credited (decrease in asset) and Bank Loan A/c will be debited (decrease in liability). Therefore, now bank loan will not appear in New Balance Sheet.


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in the revalution credit side we make the bank loan paid of it is our liability and liability is reduced so it is our profit.

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It will appear in the credit side of the revaluation Ac
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