Which item will be credited to the credit side of Revaluation Account?

Correct answer: Unrecorded asset

The governing concept is the debit-credit treatment of gains and losses in Revaluation Account. An unrecorded asset discovered at admission is brought into the books because it belongs to the firm but was omitted earlier. Its recognition increases net assets and creates a gain, so Revaluation Account is credited. Therefore option A is correct. A decrease in an asset reduces net worth and is a loss, so it is debited. An increase in liability also creates a loss and is debited. Writing off bad debts reduces the value of debtors and is likewise a debit, generally after considering any existing provision. Thus the other three alternatives represent debit-side items, not a credit-side gain.