Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

On the admission of a new partner in the partnership firm, increase in the value of assets is debited to which account?

Options:

Revaluation Account

Assets Account

Old Partner's Capital Accounts

None of the Above

Correct Answer:

Assets Account

Explanation:

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)