Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
On reconstitution of a partnership firm, recording of an unrecorded liability will result in which of the following?
Options:
Gain to the existing partners
Loss to the existing partners
Neither gain nor loss to the existing partners
None of these
Correct Answer:
Loss to the existing partners
Explanation:
On reconstitution of a partnership firm, recording of an unrecorded liability will result in Loss to the existing partners.