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In which situation will Revaluation Account show a profit?

Answer and explanation

Correct answer: Decrease in liabilities and increase in assets together exceed losses

Profit occurs when credit effects exceed debit effects. Asset increase and liability decrease are credit effects.

Related tags

Profit ConditionConceptualCredit EffectsAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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