Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

In case of admission of a partner, what will be the entry for unrecorded investments?

Options:

Debit Partners Capital A/cs and Credit Investments A/c

Debit Revaluation A/c and Credit Investment A/c

Debit Investment A/c and Credit Revaluation A/c

None of the above

Correct Answer:

Debit Investment A/c and Credit Revaluation A/c

Explanation:

Investment A/c Dr
       To Revaluation A/c
(Unrecorded assets recorded)