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If both accumulated profits and accumulated losses are given what is better to do first?

Answer and explanation

Correct answer: Find net effect of both

Both are old results so their net effect can be found and shared in old ratio. This keeps calculation clear.

Related tags

NettingAccumulated Profits LossesExam TipReservesReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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