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When should revaluation account not be used for goodwill adjustment on admission?

Answer and explanation

Correct answer: When only compensation for sacrifice is needed

Goodwill compensation is linked with partners' capital accounts. Revaluation account is for changes in assets and liabilities.

Related tags

Revaluation AccountGoodwill AdjustmentConceptGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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