Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
In a partnership firm, in the absence of an agreement surplus or shortage of capital should be adjusted through:
Options:
Cash
Current A/c
Either option 1 or 2
Any of these
Correct Answer:
Cash
Explanation:
In case of the absence of any specific instruction, the deficiency or surplus is adjusted by bringing in or withdrawing cash not through the current account.