Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
If, at the time of admission, the revaluation A/c shows a profit, it should be credited to which account?
Options:
Old partners capital accounts in the old profit sharing ratio.
All partners capital accounts in the new profit sharing ratio.
Old partners capital accounts in the new profit sharing ratio.
Old partners capital accounts in the sacrificing ratio.
Correct Answer:
Old partners capital accounts in the old profit sharing ratio.
Explanation:
If, at the time of admission, the revaluation A/c shows a profit, it should be credited to old partners capital accounts in the old profit sharing ratio.