Which item will be placed on the debit side of Revaluation Account?

Correct answer: Decrease in asset

The Revaluation Account records gains and losses arising from changes in the values of assets and liabilities. A decrease in an asset lowers the firm’s net assets and is therefore a loss. Losses are recorded on the debit side of Revaluation Account. An unrecorded asset brought into the books is generally a gain and is credited; a decrease in liability also reduces the firm’s obligations and is a gain, so it is credited. An increase in an asset increases net assets and is likewise credited. Thus only decrease in asset belongs on the debit side among the given choices. The amount would be the reduction in value, not the full asset balance. Hence option D is correct.