If gain items are ₹16000 and loss items are ₹10500 then what is the net revaluation result?

Correct answer: ₹5500 profit

The governing principle is that the net result in a Revaluation Account is obtained by comparing total gains with total losses. Gains are represented by credit items and losses by debit items. In this case, total gains are ₹16,000 and total losses are ₹10,500. The excess of gains is ₹16,000 − ₹10,500 = ₹5,500. Because the credit total is higher, the difference is a net revaluation profit of ₹5,500, which is transferred to the partners’ capital or current accounts in their agreed profit-sharing ratio. Option B incorrectly reverses the sign, while option C adds both figures and option D ignores the gains.