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Why is cash capital brought by new partner not put into revaluation account?

Answer and explanation

Correct answer: Because it is capital contribution not value change

Revaluation account is for revaluing assets and liabilities. 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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