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Class 12 Accountancy Reconstitution - Admission of a Partner Asset RevaluationEasy

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If debtors are ₹30000 and a new provision of ₹1200 is required then what happens in Revaluation Account?

Answer and explanation

Correct answer: ₹1200 debit

New provision reduces the realizable value of debtors so it is a loss. Debit the new provision.

Related tags

Debtors Provision New-Provision Asset Revaluation Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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