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Old balance sheet shows prepaid advertisement of ₹36000. On admission its full benefit is considered expired. What will happen in Revaluation Account?

Answer and explanation

Correct answer: Debit ₹36000

Prepaid advertisement is an asset and must be written off when its benefit expires. Writing off an asset is debited to Revaluation Account.

Related tags

Prepaid AdvertisementWrite OffAsset DecreaseAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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