If a creditor is written off, they should be considered as paid off and not revalued.

Explanation:

When a creditor is written off, it means that the company has determined that the debt owed to the creditor is uncollectible or has become irrecoverable. In accounting terms, this is treated as an expense and is recorded as a bad debt expense. The amount of the debt is deducted from the accounts receivable balance, reducing the company's assets. However, it does not mean that the debt is completely erased or forgiven.

Considered as paid off:

When a creditor is written off, it is considered as paid off because the company has recognized the fact that the debt is unlikely to be recovered. By writing off the debt, the company acknowledges that it has exhausted all efforts to collect the outstanding amount. Therefore, the debt is treated as if it has been settled or paid off.

Revaluation account:

A revaluation account is used to record changes in the value of assets or liabilities. It is typically used when there is a significant change in the value of an asset or liability, such as a revaluation of fixed assets or a change in the value of investments. However, a creditor being written off does not fall under the scope of revaluation.

Why not revalued:

Revaluation is usually done to reflect the fair value of an asset or liability. In the case of a creditor being written off, the debt is no longer considered as an asset to the company as it is deemed uncollectible. Therefore, there is no need for revaluation as the value of the debt has already been adjusted through the write-off process. Revaluation is typically used for assets or liabilities that have a continuing value or potential for future recovery.

In conclusion, when a creditor is written off, it should be considered as paid off and not revalued. The debt is treated as an expense and deducted from the accounts receivable balance. Revaluation is not applicable in this case as the debt is no longer considered an asset to the company.

It means paid off