Computer value decreased from ₹25000 to ₹21000. What will happen in Revaluation Account?

Correct answer: ₹4000 debit

Direct answer: Option A, ₹4,000 debit in the Revaluation Account. The computer’s book value is ₹25,000 and its new value is ₹21,000. The decrease is ₹25,000 − ₹21,000 = ₹4,000. A fall in an asset’s value is a loss for the firm. In revaluation accounting, a decrease in an asset is recorded on the debit side of the Revaluation Account. Option A is therefore correct. Option B, ₹4,000 credit, reverses the entry; an asset increase, not a decrease, is credited. Option C, ₹21,000 debit, uses the new total value instead of the amount of decrease. Option D, ₹25,000 credit, uses the old value and also places it on the wrong side. The important distinction is between the value and the change in value: record only ₹4,000. Memory cue: asset down means revaluation debit; asset up means revaluation credit.