On the admission of a new partner in the partnership firm, increase in the value of assets is debited to which account?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Assets Account.
On the admission of a new partner in the partnership firm, any increase in the value of assets is debited to Assets Account.
On the admission of a new partner, increase in the value of assets is debited to asset account.
Journal entry will be-
Assets A/c Dr.
To Revaluation A/c
(Increase in assets)