Journal Entry for Revaluation Charges Paid by the Firm

There are a few steps involved in recording the journal entry for revaluation charges paid by the firm. Here is a breakdown of the process:

Step 1: Identify the Accounts Involved

The first step is to identify the accounts involved in the transaction. In this case, there are two accounts:

1. Revaluation Charges
2. Cash/Bank Account

Step 2: Determine the Amounts

The next step is to determine the amounts involved in the transaction. In this case, the firm paid 1200 for revaluation charges.

Step 3: Record the Journal Entry

Once you have identified the accounts and determined the amounts, you can record the journal entry. Here is how it would look:

Debit Revaluation Charges - 1200
Credit Cash/Bank Account - 1200

Step 4: Explanation of the Journal Entry

When the firm pays for revaluation charges, it is recorded as an expense in the books of accounts. The debit entry to the revaluation charges account reflects the increase in expenses, while the credit entry to the cash/bank account reflects the decrease in cash/bank balance.

Conclusion

Recording the journal entry for revaluation charges paid by the firm is a simple process, but it is important to ensure that all the steps are followed correctly to maintain accurate books of accounts.

Revaluation charges are those charges which are being paid at the time of revaluating the assets and liabilities of business.So,it's like the expense of business.So,entry will be revaluation expenses A/c Dr....1200 To bank A/c.....1200