Multiple choice

X, Y and Z are the partners sharing profits in the ratio of 3 : 2 : 1. They decide to change the ratio 5 : 3 : 2. On the date of change, assets of the firm are revalued; value of Building is appreciated by 20,000 and a provision for bad debts is created by 5,000. Zs capital Account will be _________________.

  1. Credited by 3,000

  2. Debited by 3,000

  3. Debited by 2,500

  4. Credited by 2,500

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A Correct answer