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In Memorandum Revaluation method, after sharing first stage profit among old partners, in which ratio is the reverse effect given in the second stage?

Answer and explanation

Correct answer: Among all partners in the new profit sharing ratio

The second part reverses the values to keep books at old values. Its effect is given among all partners in the new ratio.

Related tags

Memorandum RevaluationNew RatioReverse EntryAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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