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Why is new partner's capital not recorded in revaluation account on admission?

Answer and explanation

Correct answer: Because capital contribution is not an asset value change

Revaluation account is only for changes in asset and liability values. New partner's capital is recorded separately in capital account.

Related tags

Capital ContributionNot RevaluationConceptAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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