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The firm's old records did not include an insurance claim. On admission a claim of ₹27000 is considered certainly receivable. What will be the correct entry?

Answer and explanation

Correct answer: Debit Claim Receivable Account and credit Revaluation Account

The claim receivable is an asset. When an unrecorded asset is brought into books Revaluation Account is credited.

Related tags

Insurance ClaimReceivableUnrecorded AssetAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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