Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
If at the time of admission of a partner, some profit and loss account balance appears in the books, it will be transferred to which account?
Options:
Profit & Loss Adjustment Account
All partner's Capital Accounts
Old partner's Capital Accounts
Revaluation Account
Correct Answer:
Old partner's Capital Accounts
Explanation:
If at the time of admission of a partner, some profit and loss account balance appears in the books, it will be transferred to Old partner's Capital Accounts.