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What is the correct reason for not giving revaluation profit to the new partner?

Answer and explanation

Correct answer: The profit relates to assets and liabilities before admission

Revaluation corrects the position of the old business. Therefore its profit is given to old partners.

Related tags

New PartnerOld PartnersReasoningAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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