Goods worth ₹36,000 in the old stock are found damaged, while the value of the remaining stock increases by ₹21,500. What will be the net effect on the Revaluation Account?

Correct answer: ₹14,500 loss

The damaged goods create a loss of ₹36,000 in the Revaluation Account, while the increase in the remaining stock creates a gain of ₹21,500. Therefore, net loss = ₹36,000 − ₹21,500 = ₹14,500. Option C has the correct amount but the wrong nature of effect because the result is a loss, not a profit. Exam tip: treat a decrease in an asset as a loss and an increase as a gain, then calculate the difference.