Practicing Success
In case of admission of a partner, expenses on the revaluation account are paid by a partner named A of ₹3500, what will be the journal entry for this? |
Expenses A/c Dr. ₹3500 Revaluation A/c Dr ₹3500 Revaluation A/c Dr.. ₹3500 A's capital A/c Dr.. ₹3500 |
Revaluation A/c Dr.. ₹3500 |
The correct answer is option 3 i.e. Expenses are paid by partner; these are to be returned by the firm if it is mentioned in partnership deed. Expenses are losses for the firm that's why revaluation account is debited, and partners' capital A/c is credited. |