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A and B are old partners in 2:1. Revaluation Account shows loss ₹27000. Why will new partner C not be included in this loss?

Answer and explanation

Correct answer: Because loss relates to assets and liabilities before admission

Revaluation relates to changes in old values so its effect belongs to old partners. The new partner is not charged with old loss.

Related tags

New PartnerOld LossReasoningAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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