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Unrecorded furniture of ₹16000 is found. What will be the correct accounting effect?

Answer and explanation

Correct answer: Furniture account debit and revaluation account credit

Unrecorded furniture is an asset so the asset account is debited. Revaluation account is credited for the gain.

Related tags

Unrecorded AssetFurnitureJournalAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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