Profit and loss adjustment A/c
Capital A/c of old partners
Assets A/c
Profit and loss A/c
Answer is Wrong!
Answer is Right!
The correct answer is: A. Profit and loss adjustment A/c
When a new partner is admitted into a partnership, the assets of the partnership are usually revalued. This is done to ensure that the new partner is paying a fair price for their share of the partnership. The increase in the value of the assets is credited to the profit and loss adjustment account. This account is used to record any changes in the partners’ capital accounts.
The other options are incorrect because:
- Option B: The capital accounts of the old 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube