Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
The balance of Revaluation Account or is transferred to Old Partner's Capital Accounts in which ratio?
Options:
Old profit-sharing ratio
New profit-sharing ratio
Equal ratio
Sacrificing Ratio
Correct Answer:
Old profit-sharing ratio
Explanation:
The balance of Revaluation Account or Profit & Loss Adjustment Account is transferred to Old Partner's Capital Accounts in old profit sharing ratio.