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Partners decide that Revaluation Account will not be opened and assets will remain at old values. Still through what can the effect of value changes be adjusted?

Answer and explanation

Correct answer: Memorandum Revaluation Account

When book values are not to be changed Memorandum Revaluation Account may be used. This is an exam hint for the alternative method.

Related tags

Memorandum RevaluationAlternative MethodBook ValuesAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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