Practicing Success
At the time of reconstitution of the partnership firm, recording of an unrecorded asset will lead to.......... |
Loss to existing partners Gain to existing partners Neither gain nor loss to the existing partners Decrease in Reserves of the firm |
Gain to existing partners |
When WE record an unrecorded asset during the reconstitution of a partnership firm, it typically means recognizing an asset that wasn't accounted for before. The firm is gaining by acknowledging an asset it didn't have on the books. |