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If interest on loan is wrongly debited to Revaluation Account, what is the main accounting error?

Answer and explanation

Correct answer: Loan interest is linked with revaluation profit or loss

Interest on loan is a firm expense, not a revaluation adjustment. Exam tip: connect loan interest with Profit and Loss Account.

Related tags

Error AnalysisRevaluationLoan InterestPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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