If the debit side of Revaluation Account is ₹25000 and the credit side is ₹21000 then what is the result?

Correct answer: ₹4000 loss

The correct answer is B: ₹4,000 loss. The Revaluation Account compares gains and losses caused by changes in asset and liability values. A debit balance or a debit side larger than the credit side indicates a loss. Here, debit total = ₹25,000 and credit total = ₹21,000. Difference = ₹25,000−₹21,000=₹4,000. Since the debit side is larger, the account has a debit balance of ₹4,000, which is revaluation loss. Option B is correct. Option A is wrong because a profit occurs when the credit side is larger, not the debit side. Option C, ₹46,000 loss, incorrectly adds the two totals instead of finding their difference. Option D, ₹21,000 profit, mistakes the credit total for the final result. The amount of ₹4,000 loss is transferred to the old partners’ Capital or Current Accounts in their old profit-sharing ratio. Exam cue: debit greater means loss; credit greater means profit.