Which of the following items will be recorded on the debit side of the Revaluation Account?

Correct answer: Unrecorded liability

Recording an unrecorded liability creates an additional obligation for the firm and is treated as a loss. Losses are recorded on the debit side of the Revaluation Account. In contrast, an increase in assets, a decrease in liabilities, and an unrecorded asset are gains and are recorded on the credit side. Exam tip: debit decreases in assets and increases in liabilities; credit increases in assets and decreases in liabilities.