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Which statement about the Revaluation Account is correct?

Answer and explanation

Correct answer: It determines the profit or loss from revaluing assets and liabilities

The Revaluation Account records the effects of changes in the values of assets and liabilities and is used to determine the resulting profit or loss. It does not show a partner’s capital.

Related tags

Revaluation AccountAssets And LiabilitiesProfit Or LossAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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