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If the full new value of an asset is recorded in revaluation account what is the mistake?

Answer and explanation

Correct answer: Only change amount should be recorded

Only increase or decrease is recorded in revaluation account. Recording full new value will make profit or loss wrong.

Related tags

Common MistakeChange AmountRevaluationAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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