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In Memorandum Revaluation Account the first part shows a loss of ₹50000. What result will the second part show?

Answer and explanation

Correct answer: ₹50000 profit

In the memorandum method the second part gives the reverse effect of the first part. So the first loss becomes profit in the second part.

Related tags

Memorandum RevaluationReverse EffectProfitAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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