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Class 12 Accountancy Reconstitution - Admission of a Partner Asset RevaluationHard

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Rent paid in advance was ₹24000. On admission ₹10000 is considered expired. What is the correct effect in revaluation?

Answer and explanation

Correct answer: Debit ₹10000

Rent paid in advance is an asset and the expired part is no longer beneficial. Therefore asset decrease of ₹10000 is debited.

Related tags

Advance Rent Expired Asset Debit Asset Revaluation Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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