If on admission the value of a liability increases from ₹110000 to ₹125000, what will happen in Revaluation Account?

Correct answer: Debit ₹15000

The direct answer is Option B: ₹15,000 is debited to Revaluation Account. First find the increase: new liability ₹1,25,000 minus old liability ₹1,10,000 equals ₹15,000. An increase in liability means the firm now owes more, so it is a loss. A loss is debited in Revaluation Account. Thus the entry has a debit of ₹15,000, not the full new liability amount. Option B is correct. Option A is wrong because credit represents a gain in this situation, while increased liability is a loss. Option C is wrong because ₹1,25,000 is the total new value, not the change; only the difference of ₹15,000 is recorded. Option D is wrong because the liability has changed, so there is an effect. The logical chain is: compare values, calculate the increase, classify it as loss, and debit the account. Memory cue: liability increase is a burden, and a burden is debited.