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In the second part of Memorandum Revaluation Account the first part profit is reversed. If the first part shows profit of ₹36000 then what will the second part show?

Answer and explanation

Correct answer: ₹36000 loss

The second part gives the reverse effect to keep books at old values. Therefore first part profit becomes loss in the second part.

Related tags

Memorandum Second PartReverse EffectLossAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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