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Why profit and loss adjustment account or revaluation account is prepared? |
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Answer» Revaluation of assets and liabilities is done with the help of a new account called “Revaluation Account.” Sometimes, this account is called as “Profit and Loss adjustment account”. This account is a nominal account in nature. Therefore, if there is a loss due to revaluation, revaluation account is debited and if the revaluation results in a profit, the revaluation account is credited. |
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