a b/e of 4000 which was previously discounted with the banker, was dishonoured on 31 march 2014 but no entry has been passed for that.
theres a b/r of 20000 in balance sheet
ques: effect of this on revaluation account
your question is: in this question after dishonour theres increase in asset(B/R) and increase in liability (bank) so in a way theres change in assets and liabilities
You are wrong in saying that on dishonour Bill Receivables will increase. Once any Bill of Exchange is dishonoured, it is returned to the drawee (so he becomes debtor). Since this Bill of Exchange has been dishonoured, bank will deduct money from Drawer's account (bank account will reduce). As there is no loss or gain, there will be no impact on Revaluation A/c.