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When may recording the net amount instead of separately recording reserve and accumulated loss be acceptable?

Answer and explanation

Correct answer: When both are adjusted among old partners in the same old ratio

Both items relate to old partners and go in the same old ratio. Therefore finding net effect is useful in exams.

Related tags

NettingAccumulated ProfitAccumulated LossReservesReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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