What is Revaluation Account? How is the balance of Revaluation Account dealt?

Revaluation Account is a Nominal Account. It is credited with an increase in the value of assets and a decrease in the amount of liabilities (it is a gain) and debited with any decrease in the value of assets and increase in the amount of liabilities (it is a loss).

The net result (Balance) of this account is either gain (Profit) (if total of credit side is more than the total of debit side) or loss (if total of debit side is more than the total of credit side) which is transferred to the Partner’s Capital Accounts in their old profit sharing ratio.