What is the result when the debit side of Revaluation Account is more than the credit side?

Correct answer: Loss

Direct answer: Option B, loss. A Revaluation Account compares gains and losses caused by changes in asset and liability values. Items reducing the firm’s value are debited, while increases or gains are credited. If the debit side is greater than the credit side, total losses exceed total gains. The difference is therefore a revaluation loss, which is transferred to the old partners’ capital or current accounts in their old profit-sharing ratio. Option A, profit, is wrong because profit occurs when the credit side exceeds the debit side. Option C, new ratio, is not an accounting result; a ratio is used for sharing, not for naming the balance. Option D, bank surplus, is unrelated because revaluation does not automatically mean extra bank cash. The amount of loss would be debit total minus credit total. Memory cue: debit more means loss; credit more means profit.