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A firm directly credited asset increase of ₹48000 to old partners capital accounts without opening Revaluation Account. If real method is followed what was the correct process?

Answer and explanation

Correct answer: Debit Asset Account and credit Revaluation Account then transfer profit to old partners

In real method value change first goes to Revaluation Account. Then its profit or loss is distributed among old partners.

Related tags

Real MethodAsset IncreaseProcessAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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