Read the following facts about admission of a partner. A. A new partner acquires his share from the old partners that reduces the old partners share in profits. B. The partner's capital must be adjusted so as to be proportionate to their new profit sharing ratio. C. Assets and Liabilities may be revalued and reassessed on admission of a partner. D. Adjustment for Reserves and Accumulated profits/loss is done. E. Profit sharing ratio of existing partners may change on admission of a new partner. Choose the correct answer from the options given below:

Question

Option 1: A, B, C and D only

Option 2: B, C, D and E only

Option 3: C, D and E only

Option 4: A, C, D and E only

AfterBoards · Accepted Answer

The answer is 'A, C, D and E only'. View full solution:

List - I	List - II
(a) Building undervalued	(i) Credited to Partner's Capital Account
(b) Building overvalued	(ii) Credited to Revaluation Account
(c) Capital withdrawn	(iii) Debited to Revaluation Account
(d) Additional capital introduced	(iv) Debited to Partner's Capital Account

CUET Accountancy 2023 29 May Shift 2 PYQs

Keyboard Shortcuts