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Class 12 Accountancy Reconstitution - Admission of a Partner Asset RevaluationExpert

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Debtors are ₹50000 and provision for doubtful debts must be increased from ₹3000 to ₹5000. What happens in Revaluation Account?

Answer and explanation

Correct answer: ₹2000 debit

Increase in provision is a loss and only the extra ₹2000 is debited. Do not record the whole provision again.

Related tags

Doubtful Debts Provision Increase Loss Asset Revaluation Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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