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प्रश्न
State Whether the following Statement is True or False:
All accumulated profits and losses are transferred to the Revaluation Account at the time of admission of a partner.
चूक किंवा बरोबर
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उत्तर
The statement is false.
Explanation:
- Accumulated profits and losses are not transferred to the Revaluation Account.
- They represent past earnings or losses that belong entirely to the existing partners.
- Therefore, they are transferred directly to the Old Partners' Capital/Current Accounts in their Old Profit Sharing Ratio.
- The Revaluation Account is strictly used to record current changes in the values of assets and liabilities.
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