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If debit balance of Profit and Loss Account ₹16000 is to be distributed among old partners before admission should it pass through Revaluation Account?

Answer and explanation

Correct answer: No it is distributed directly to old partners capital accounts

Profit and Loss Account balance is accumulated profit or loss not asset revaluation. It is distributed directly among old partners in old ratio.

Related tags

Accumulated LossNot RevaluationOld PartnersAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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