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If Revaluation Account has profit and the firm follows fixed capital method where may the profit be transferred?

Answer and explanation

Correct answer: Credit to old partners current accounts

In fixed capital method capital remains fixed and adjustments go to current accounts. Profit is credited to old partners current accounts.

Related tags

Fixed CapitalCurrent AccountProfit TransferAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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