How is an increase in intangible asset treated in Revaluation Account?

Correct answer: Credited as gain

Direct answer: An increase in an intangible asset is credited to Revaluation Account as a gain, so option A is correct. Intangible assets have no physical form, but they still provide economic value; examples include copyright, patents and goodwill. In revaluation, an increase in any asset raises the value of the firm. Therefore the asset account is debited to show its higher value, and Revaluation Account is credited because the increase is a gain. Option B is wrong because an asset increase is not a loss; an asset decrease would be debited as a loss. Option C is wrong because a stated increase requires an entry. Option D is wrong because revaluation gain belongs to the old partners in their old ratio, not directly to the new partner. The answer applies to both tangible and intangible assets. Memory cue: every asset increase is a credit gain in revaluation.