Revaluaton Entry for Fixed assets affects two aspects :
1. Fixed Assets (Debit )
2. Reserve on revaluation on fixed assets.(on face of 
liability side of Balance sheet) (credit) 

Important Points
1) The increase in value of fixed assets because of 
revaluation of fixed assets is credited to ‘Revaluation 
Reserve’, and is not available for distribution as 
dividend. Revaluation Reserve is treated as a Capital 
Reserve. 
2) The increase in depreciation arising out of revaluation 
of fixed assets is debited to depreciation expense. 
4) When any asset, which is revalued, is sold, the part of 
loss resulting due to revaluation is debited to 
the ‘Revaluation Reserve’. 
5) When assets are revalued, every Balance Sheet shall show 
for a specified period of years, the amount of increase / 
decrease made in respect of each class of assets. 
Similarly, the increased / decreased value shall be shown 
in place of the original cost. 
6) In case of assets such as land and buildings, 
revaluation is desirable as their value increases over time 
and is carried out every 3 to 5 years. In case of plant & 
machinery, revaluation is carried out only if there is a 
strong case for it. In case of assets such as vehicles, 
furniture & fittings, office equipments etc., revaluation 
is not carried out. 
7) Revaluation should not result in the net book value of 
an asset exceeding its recoverable value. 
8) Revaluation does not mean only an upward revision in the 
book values of the asset. It can also mean a downward 
revision (also called impairment) in the book values of the 
assets. However, any downward revision in the book values 
of the assets is immediately written off to the Profit & 
Loss account. 
9) On upward revaluation of a fixed asset, which has been 
previously subject to downward revaluation, the amount of 
upward revaluation as is equal to the amount expensed 
previously is credited to the Profit & Loss a/c.