An unrecorded trademark is valued at ₹55,000 and an unrecorded tax liability of ₹18,000 is found. What is the net result?

Correct answer: ₹37,000 gain

The governing rule for unrecorded items is that an unrecorded asset brought into the books is a gain, whereas an unrecorded liability discovered during reconstitution is a loss. The trademark adds ₹55,000 to the firm’s net assets and is credited to the Revaluation Account. The tax liability adds an obligation of ₹18,000 and is debited. Therefore, the net gain is calculated as ₹55,000 − ₹18,000 = ₹37,000. It is not ₹73,000 because the liability must be deducted, not added. A ₹37,000 loss reverses the signs, and ₹18,000 ignores the trademark gain. Thus, option A correctly shows the net revaluation result.