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Why is revaluation loss not charged to the new partner?

Answer and explanation

Correct answer: Because the loss relates to the firm before admission

Revaluation relates to assets and liabilities of the old firm. Therefore its profit or loss is given to old partners.

Related tags

New PartnerRevaluation LossReasoningAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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