1.

Fixed Assets (BookValueRs.45,000) is under valued by 10%.Calculate the value (Dr./Cr.) tobe shown in Revaluation account.(a) Rs.4,500,Dr. (b) Rs. 4,500,Cr.(c) Rs.5,000,Dr. (d) Rs.5,000,Cr​

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ANSWER:

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C. 5,000 Dr.

since the asset is valued less than actual. so we should DEBIT it to increase it to its REAL value..

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