Multiple choice

What should be the treatment of debit balance of profit and loss account appearing in the balance sheet at the time of admission of new partner?

  1. Debited to revaluation account

  2. Credited to revaluation account

  3. Credited to capital account

  4. Debited to capital account

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This is the correct answer. The entry is: Profit and oss account _____ Dr. To partner's capital account