If the debit total of the Revaluation Account is ₹14,000 and the credit total is ₹19,000, what is the result?

Correct answer: ₹5,000 profit

The Revaluation Account compares gains and losses arising from changes in asset and liability values. The credit side normally records gains, such as an increase in an asset or a decrease in a liability, while the debit side records losses. Here, the credit total is ₹19,000 and the debit total is ₹14,000. The excess of the credit side is calculated as ₹19,000 − ₹14,000 = ₹5,000. An excess of credits over debits means that the account has a net revaluation profit of ₹5,000. This profit is transferred to the partners’ capital or current accounts in their old profit-sharing ratio.