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Stock is written down by Rs 5,000 on admission of a partner. How is the Revaluation A/c affected?
ACredited with Rs 5,000
BDebited with Rs 5,000
CNo effect at all
DCredited with Rs 10,000
Answer & Solution
Correct answer: B. Debited with Rs 5,000
A reduction in an asset is a loss, so the Revaluation Account is debited by Rs 5,000.
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