Multiple choice

There is a claim for damages which is now accepted on admission of a partner. It would be debited in

  1. revaluation A/c

  2. partner's capital A/c

  3. partner's loan A/c

  4. none of above

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

It is a liability created on admission of a partner, so it is debited to revaluation A/c, because new partner has no concern with this liability.