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Building is recorded at ₹450000 and on admission its value is reduced by 6 percent. How much will be debited to Revaluation Account?

Answer and explanation

Correct answer: ₹27000

Decrease in building is 6 percent of ₹450000 which is ₹27000. Decrease in an asset is a revaluation loss.

Related tags

BuildingDecreasePercentageAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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