How to treat the following adjustment.

-Provision for bad debt found in excess by 400 Rs.

so our liability is LESS than we have shown it to BE.. hence it is A PROFIT FOR US,,,, so PROVISION FOR DOUBTFUL DEBTS A/C DEBITED TO REVALUATION A/C BY rs 400.

- MOREOVER... liability ( provision) is reduced so it is debited and we are getting profit so revaluation is credited

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Dr revaluation a/c by 400

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